Sprint Nextel Eliminating 8,000 Workers
This story was written by Dianne See Morrison.
Sprint (NYSE: S) Nextel is shedding 8,000 jobs in the next three months as the struggling wireless and wireline carrier tries to weather the recession, the company said today. The cutswhich will affect 14 percent of the company's 60,000-person workforceare expected to be completed by the end of March with the aim of saving the company $1.2 billion in annual labor costs. The U.S.'s number-three carrier said it was also suspending pay increases and matching contributions to retirement funds as part of its cost-savings effort. The company said it would incur a charge in excess of $300 million for severance and related costs in the first quarter. Last year, Sprint got rid of 800 jobs in a voluntary buyout plan. In December, larger rival AT&T (NYSE: T) said it was eliminating 12,000 of its employees.
By Dianne See Morrison