Friday, 9 January 2009

Sprint plans layoffs to cut costs – USA

Sprint Nextel, in order to cut operating costs, has announced plans to layoff 160 employees from its Herndon, Virginia (US), operation in March 2009. According to the company, the downsizing will be done from Xohm operations, which is its WiMAX business that merged with Clearwire in 2008. Though, the company has tried to absorb some employees in Clearwire and some within itself, all staff could not be absorbed.

According to Dan Hesse, Chief Executive Officer of Sprint, the company may cut further jobs. However, the matter will be decided after its fourth quarter results and subscriber numbers. The company is planning to shut its 20 call centers in 2009 to further reduce its costs. Sprint has also maintained that it will provide its WiMAX service under the brand “Sprint 4G” as an MVNO of Clearwire.