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Sprint Nextel to Lay Off 4000 Employees in 2008

Date: 1/20/2008 6:46:53 PM

American wireless giant, Sprint Nextel, has confirmed rumours of impending cutbacks, announcing that it plans to layoff 4,000 of its 60,000 employees this year.

Sprint, which let 5,000 workers go last year, also said that it intends to close around 125 of its 1,400 branded retail stores. The company hopes to save between $700 million and $800 million annually as a result of these cutbacks.

With a total customer base of 53.8 million, Sprint is currently America’s third largest wireless provider. It has suffered from high subscriber churn rates in recent quarters, however, and has failed to keep up with leading rivals, AT&T and Verizon Wireless.

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