Sprint Nextel to lay off 8,000

Sprint Nextel Corp. said it plans to cut 8,000 employees to save $1.2 billion annually. The carrier said it will make the cuts by March 31. This reduction includes the 850 employees asked to voluntarily quit at the end of 2008. Sprint Nextel will pay $300 million for severance and reduction costs over the next few months.
The news falls right in line with Pali Research’s prediction last year that Sprint Nextel would send many employees packing during 2009. Pali’s results and other rumors began buzzing shortly after the departure of John Garcia, the man behind Sprint’s CDMA business. At the time, the carrier said the prediction was an over-reach.
AT&T Inc. cut 12,000 jobs late last year, however, the downsizing did not affect its wireless department; instead the wireless provider said it would add more employees to its mobility operations. Verizon Wireless employs 71,000 people and T-Mobile USA has a staff of about 40,000. After its shedding of 8,000 Sprint Nextel will be left with around 48,000 employees.
Sprint Nextel began making cuts in early January when it laid off 160 employees from its Herndon operations. The remaining cuts will impact all levels of the company, but because its focus is to improve customer service, the carrier said the majority of headcount reductions will be in non-customer facing groups.
“Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment,” said Sprint CEO Dan Hesse.