Sprint braced for cost cutting
US carrier Sprint is reportedly set to cut as much as $2.5 billion in costs over the next six months.
According to a memo seen by The Wall Street Journal, the company needs to cut between $2 billion and $2.5 billion in costs and has announced an external hiring freeze.
Sprint CFO Tarek Robbiati is reported to have said in the memo that the cuts will inevitably result in job reductions.
The leaked memo prompted an official statement from Sprint which claimed that changes to its cut structure were aimed at “creating a superior network, being the price leader and providing an amazing customer experience”.
“We have begun an effort to significantly take costs out of the business so the transformation of the company will be sustainable for the long-term. It is likely that some jobs will be impacted but it’s premature to discuss the details as we are in the early stages of the process,” the statement continued.
Earlier this week, Sprint announced that it would not be participating in the FCC’s 600MHz incentive auction due to be held in early 2016. The company said it had sufficient holdings to meet customer needs but the decision has been criticised by analysts.
In August, the carrier reshuffled its senior management team with the appointment of new finance, operation and technology chiefs.