Sprint Nextel cuts 4,000 jobs, closes retail outlets

Sprint Nextel announced it would eliminate 4,000 jobs and close 8 percent of company-owned retail locations after losing 683,000 subscribers during the fourth quarter. According to Sprint, the cuts represent an effort to streamline its business in anticipation of "continued downward pressure on subscriber trends, revenues, and profitability in 2008"--in addition to slashing 4,000 internal positions, the operator will cut some outsourced services and contractor deals. Sprint also announced plans to eliminate some 4,000 third-party distribution sites while shuttering 125 of its corporate-owned retail locations.

The Sprint cuts follow Q4 losses of 683,000 post-paid subscribers and 202,000 traditional pre-paid users. The company reported a net gain of 500,000 subscribers through wholesale channels, including 256,000 new Boost Unlimited users and net additions of 20,000 subscribers within affiliate channels. Post-paid churn was 2.3 percent, with improved voluntary churn in both the CDMA and iDEN subscriber bases offset by higher involuntary churn. Sprint will announce complete fourth-quarter and full-year 2007 results Feb. 28.

For more on the Sprint cuts:
- read this release

Related articles:
Sprint mulling thousands of job cuts
Sprint appoints Dan Hesse president and CEO
Sprint earnings boosted by data growth
Sprint revamping TV service