Sprint announced today that it’ll be laying off 4,000 people and closing 125 of its stores in the hopes of saving $700 million to $800 million in labor costs for 2008. It’ll also close 4,000 of its stalls and kiosks normally found in retail stores (it currently has about 20,000). The stock fell almost 19% in light of the announcement.
So is Sprint in trouble? Maybe, but new CEO Dan Hesse just took office last month and has inherited a troublesome Nextel acquisition, WiMax setbacks, and declining subscriber numbers. This could be seen as a move to shake things up a bit while freeing up some cash in the short term.
Bloodletting Continues As Sprint Cuts 4,000 Jobs [InformationWeek]