), which is controlled by Softbank of Japan, announced that it
will eliminate 800 customer service jobs, citing fewer customer
complaints as the reason. The job cut is the biggest since
Japan's Softbank Corp acquired a controlling stake in the company
in Jul 2013.
Improved customer service has resulted in fewer calls for
support service, thus, eliminating the need for customer service
staff. Sprint also cited that there are fewer employees since the
company has shut down its Nextel platform (iDEN business) in Jun
2013, as the company concentrates on core technologies like CDMA,
WiMAX and LTE.
Overland Park, KS-based Sprint has already informed most of
the employees who are to be dismissed, while the remaining
employees will be notified next month. It is believed that about
one-third of the affected employees are based in the cities of
Fort Worth Irving and Temple. However, the company plans to keep
its employee strength at around 40,000.
According to the latest American Customer Satisfaction Index
(ASCI), Sprint had a 71 rating out of 100, second only to rival
Verizon Wireless. Sprint's rating is better t than two of its
T-Mobile US Inc.
), who hold a rating of 70 and 68, respectively.
We believe that though the job cut will not have any
significant effect on its financials, this organizational
adjustment will allow the company to streamline its
Sprint - the third largest U.S. telecom operator - currently
carries a Zacks Rank #3 (Hold). Another stock worth mentioning
within this sector is
Cincinnati Bell Inc.
), which currently carries a Zacks Rank #1 (Strong Buy).
CINCINNATI BELL (CBB): Free Stock Analysis
SPRINT CORP (S): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
T-MOBILE US INC (TMUS): Free Stock Analysis
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