Thursday, December 12, 2002
Sprint Corp. said Wednesday (Dec. 11) that it will trim 2,100 employees from its payroll over the next year as it consolidates several organizational departments and moves toward integrated wireline and wireless service offerings.
One thousand of the cuts will remove back-office redundancies in the company's local, long distance, Internet and wireless network operations, and another 1,100 will be made company-wide to maintain competitive cost structures, Sprint said.
The reductions will affect the company's information technology, network, billing and accounts receivable departments and will impact engineers, said a spokeswoman at Sprint's headquarters in Overland Park, Kan., though she could not provide further specifics.
Sprint is expected to take a pre-tax charge of approximately $85 million in the fourth quarter related to the severances, and the actions are expected to result in annualized cash cost savings of approximately $145 million. The savings will be divided between Sprint's wireline FON group and wireless PCS Group, which are traded separately on the New York Stock Exchange.
The layoffs announced Wednesday represent a second round of cuts for Sprint, which cut 1,600 employees or 6 percent of its work force from its PCS Division last month to reduce operating costs.
By: DocMemory
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