Sprint to Cut Costs, Jobs
October 01 2015 - 6:50PM
Dow Jones News
Sprint Corp. is preparing to cut as much as $2.5 billion in
costs in the next six months, as the struggling wireless carrier
steps up its belt-tightening.
In a memo to staff this week, Sprint's new chief financial
officer said the company needed to cut between $2 billion and $2.5
billion in costs and announced an external hiring freeze.
The cuts "inevitably will result in job reductions," Tarek
Robbiati, Sprint's chief financial officer, wrote in the memo,
which was reviewed by The Wall Street Journal.
Sprint employed about 31,000 people as of the end of March.
Mr. Robbiati said the finance department must review and approve
all expenditures. "The main thing to consider when requesting to
spend money is to take an owner's mindset by treating every dollar
as if it were your own."
The announcement comes days after Sprint said it would sit out
the next major auction of wireless airwaves, which will save the
company billions of dollars but limit its options for network
upgrades in the long run.
Cutting $2.5 billion in costs is an ambitious target. The
company had $7.5 billion in operating expenses during the three
months ended June 30. The company has said previously it cut $1.5
billion in expenses in the last 12 months.
Write to Ryan Knutson at ryan.knutson@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 01, 2015 18:35 ET (22:35 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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