Sprint Announces Job Cuts > Sprint and Clear

reply to fiberguy

Re: Sprint and Clear

In the end.. it really does... it's more than JUST the cost of the employee itself.. ALL of the other things that employees need to do their jobs, ie: the tools, figures into the costs.

Say they lay off 30% of their phone staff... that's also a 30% reduction in communications costs.. and then those that carry cell phones.. Comcast alone spends upwards to 300 million a year with Verizon for cellular costs and that's only part of it.. they still have a lot of service/systems on Sprint still..

So yes.. ALL of these employee costs also reduce the cost burden on the over head.

Let me give you a number that you will choke on.. Health insurance alone..

Monthly, average out 2500 employees x $430 a month for benefits. That's $1,075,000.00 per month, x 12 months is $12,900,000.00 annually. Figure in costs for workman's comp, and all the other expenses AND estimating $45K a year for employee pay, on a guess average, that's another $112,500.00.

So, between pay and health alone, that's $138 million alone. You start reducing other expenses that are no longer needed to do 2500 employees being gone, and YES.. it DOES add up..

Business isn't "simple math" as you're trying to apply here.. you're figuring in such small numbers.. you don't take into account EVERY dollar spent to operate the business and support the employee you have.. seriously, if you really understood business, and accounting in cost centering, then you'd realize that the savings they are talking are real.

I'm not really gonna try to explain it any further.. just figure in costs for computers, equipment, reduction in support costs, the HR cost reductions from supporting 2500 less employees.. etc etc.. it does add up.