By Dow Jones Business News,
January 23, 2014, 04:55:00 PM EDT
Sprint Corp. on Thursday said it expects to record a roughly $165 million charge in the fourth quarter tied to job
cuts the cellphone carrier is planning for the first half of 2014.
Sprint, which didn't say how many jobs it plans to cuts, said the workforce reduction would include management and
non-management positions and should be largely completed by June 30. Sprint employed about 39,000 as of the end of 2012.
Sprint said the fourth-quarter charge would be tied to severance and related costs, but also warned additional charges
related to the workforce reduction are expected in future periods.
Sprint has languished as a second-tier U.S. wireless carrier in recent years following its problematic $35 billion
merger with Nextel in 2005 that saddled the firm with the costs of running two separate networks, one of which it
finally shut down completely a few months ago. Now majority-owned by SoftBank Corp., Sprint needs to prove it is able to
compete in a wireless industry currently dominated by Verizon Wireless and AT&T Inc.
In a filing with the Securities and Exchange Commission, Sprint said it began the cut jobs last week as a way to
reduce costs to "better meet the changing dynamics of the marketplace."
The company in late August moved to cut about 800 jobs in its customer support operations, and at the time, Sprint
said it didn't foresee companywide cuts.
A Sprint spokesman wasn't immediately available to comment on the scope of the job cuts.
The Wall Street Journal has also reported that Sprint is working toward a possible bid for T-Mobile US Inc., setting
the stage for a telecom merger that if permitted by regulators would leave the U.S. wireless market dominated by three
Write to John Kell at email@example.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
Copyright (c) 2014 Dow Jones & Company, Inc.