Sprint Cutting Another 2,000 Jobs

Sprint the wireless carrier said it would be cutting another 2,000 jobs or about 5% of its workforce as part of its effort to cut more than $1.5 billion in yearly spending.

The company announced that the cuts would take place over the upcoming weeks and it still has not determined how many would be cut from the different divisions.

Sprint announced in early October another round of cuts and did not say how the total amount of jobs cuts at that time. On Monday, Sprint did say the job cuts would lower its cost of labor by a total of $400 million annually.

Sprint, based in Overland Park, Kansas is the third biggest wireless carrier in the United States, but has lost billions in the last few years, as its subscribers cancel contracts.

Softbank based in Japan acquired the majority stake of Sprint in 2013. The company since then has eliminated thousands of employee positions. At the end of 2014, Sprint reported it had over 38,000 employees.

Sprint has and continues to make changes at the highest executive levels. This past August the company replaced Dan Hesse as the CEO with Marcelo Claure. The Brazilian had been the distributor of mobile handsets at Brightstar a unit of Softbank.

The change at the top came after Sprint stopped its effort to acquire T-Mobile US one of its competitors and the No. 4 wireless carrier in the U.S.

The losses the company has had are not ending. On Monday, Sprint said it had a $765 million loss, equal to 19 cents a share, during its recent fiscal second quarter.

Sprint had $8.48 billion in revenue. Analysts had been expecting revenue of $8.65 billion and a loss of only 5 cents per share.

On the news, shares at Sprint dropped by 3.7% during afterhours trading. The stock has fallen by 42% in 2014 and close at $6.20 on Monday afternoon.

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