One of the top priorities of the new Sprint Corporation (NYSE:S)’s CEO is to control the operating costs of the company while getting its subscribers back. As the third largest U.S. Carrier said earlier, the company is likely to lay off more of its workforce in near future starting with its Overland Park, Kansas headquarters where the company announced 452 layoffs.
With the target of leaner business, Marcelo Claure, CEO of Sprint, is ready to lower down the operating costs and the company has started the process by cutting 452 jobs at its Kansas headquarters. As per the carrier’s latest October 3 regulatory filing, the job cuts are likely to cost $160 million in severance and other associated costs. The company stated in its filing, “We anticipate additional reduction activity in the next few weeks and will provide an updated list of impacted positions.”
The primary targets of these layoffs were the IT department and portfolio management employees. One could expect more layoffs in the rest of the month and as the company announced in January this year that these layoff costs might pile up to $165 million. Earlier this year, Sprint Corporation (NYSE:S) laid off 477 employees in March and the company now has around 33,000 employees against its 38,000 strong workforce in December 2013.
According to the market studies, Sprint maintained one of the lowest profit margins in the market at 3.4% whereas its competitors like T-Mobile US Inc (NYSE:TMUS) had 13.4% profit margins in the last quarter. The new CEO, Marcelo Claure, is focusing over the turnaround of the third largest U.S. carrier by covering its financial losses and reversing its declining subscriber figures. He informed the employees about these job cuts by considering them as an important part of the overall turnaround strategy of the company.
Earlier Scott Sloat, spokesman for Sprint Corporation (NYSE:S), said, “We are still working through the details so exact numbers and locations are not available at this time.”
This article has been written by Prakash Pandey.
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