OVERLAND PARK, Kan.-Sprint PCS said it will cut approximately 1,600 employees and 500 contractors in an attempt to reduce its operating expenses and create a more competitive cost structure. The cuts are expected to effect approximately 6 percent of the carrier’s work force.
Most of the job cuts are expected to come from marketing, information technology, network and finance, which the company said will cut layers of management and reprioritize products and services to reduce costs while continuing to make customer satisfaction its top priority.
“With these moves, PCS is reducing layers of management to speed decision making,” said Len Lauer, president of Sprint PCS. “This will allow us to realize immediate, dramatic and positive impacts on Sprint customers and deliver the kind of superior service our customers expect and deserve.”
Sprint said it expects to take a $31 million pre-tax charge during the fourth quarter for severance-related costs associated with the job cuts, but predicted the actions would result in approximately $170 million in annualized cash cost savings.
