Sprint has finalized plans to cut overheads of about $2.5 billion, and to this end, about 31,000 employees may likely lose their jobs within the next six months. This fact was contained in an internal memo dispatched earlier this week to employees by a new chief financial officer, Tarek Robbiati.
The Wall Street Journal on Thursday evening first reported on the memo and revealed that Sprint is not planning to raise any more financial through the public or capital markets in the nearest future. The company has also commenced to raise coverage and capacity by boosting its network and increasing the number of cell sites already using its current spectrums.
Not long ago, Sprint publicized the fact that it was embarking on an aggressive iPhone pricing plan that would be as low as $1.
Sprint had about 57.7 million subscribers at the end of the first quarter, but it lost its position and dropped to fourth place among wireless carriers in the US, slipping behind the T-Mobile US which is a big rival.
Although this works to help the company save some cash, it does not allow it to upgrade and expand its network, eventually hurting its operations in the long run.
Within the past one year, Sprint has cut nearly $1.5 billion in overhead costs.
In a confirmation of events in the company, Sprint stated that they agree “shared with our top leaders that in order to be successful, we must change our cost structure so we can fuel our growth and operate more efficiently. We believe the steps we are taking across our business are critical to ensuring Sprint is a viable, successful and sustainable business for the foreseeable future.”
The company is however not really saying much at the moment, citing that it is premature to discuss details since they are in the early stages of the restructuring process, but then they are set to go all the way to make the company sustain itself without debts.