Sprint to cut up to 2,500 jobs, sees charge

[OhioChick]

Source: Reuters

10 Nov 2009, 0445 hrs IST, REUTERS

NEW YORK: Sprint Nextel Corp is taking actions to eliminate 2,000 to 2,500 jobs in the current quarter in an effort to save $350 million annually.
Sprint, which has about 42,000 employees, will take a charge of $60 million to $80 million in the current quarter for severance payments and other costs related to the cutbacks, the company said on Monday.

The No. 3 U.S. mobile service said many of the job cuts would happen by the end of December and would include jobs across the entire company including layoffs in its wholesale unit as well as a reduction in contractor jobs. Last week Sprint, which has been working on stemming customer losses in its mobile business, had said that it was planning dozens of layoffs in its wholesale business due to a lack of growth in its landline business. Sprint shares were up 54 cents or almost 19 percent at $3.38 on New York Stock Exchange after the news.

Read more: http://economictimes.indiatimes.com/articleshow/5214022.cms

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Yay! More job cuts. :sarcasm:

[ihavenobias]

1. The bold sentence sure is interesting in light of the headline. n/t

[BadgerKid]

3. Not really, cutting costs is seen as not losing money.

The article suggests to me the company is losing income, so they figure it's better to cut jobs now instead of having to support the workers later, and Verizon isn't forecasting any pickup in business for at least a good part of 2010. You have to wonder if bonuses or top management income is going to increase.

[FrenchieCat]

2. The telecom companies are corporate sell outs.

who would want to work for them? Not people we care about....surely. :sarcasm: