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story category Sprint Announces 4,000 Layoffs, Store Closures
'Streamline' is so pleasant sounding...
(old news - 12:08PM Friday Jan 18 2008)
tags: business · trouble · Sprint Telecom
Sprint today announced that they'll be terminating 4,000 employees in their latest wave of cost-cutting efforts. In addition to 4,000 layoffs, Sprint says there will also be "reduced utilization" of outsourced services and subcontractors. Sprint will be eliminating 4,000 third-party distribution points and 125 (8%) of their company-owned retail locations. Sprint says the moves will save the company between $700 and $800 million:
Sprint Nextel currently expects these actions to reduce its internal and external labor costs by an annualized rate of $700-$800 million by the end of 2008. The employee headcount reductions are expected to be completed in the first half of the year and will include management and non-management positions throughout the company. The company will offer a voluntary separation plan for its employees, and displaced employees will receive separation pay and outplacement and other services. The company expects to record a first-quarter charge for severance costs associated with the workforce reduction.
Wall Street still thinks it's very likely that Sprint will spin off its Xohm WiMax business, which is expected to launch this Spring.

Related:
  1. Sprint Pays $30 Million For USF Overcharging
  2. Wireless Carriers Struggle to Adapt to Changing Times
  3. Sprint and Nextel Never Really Merged
  4. Wednesday Evening Links
  5. Massive AT&T Reorganization, Possible Layoffs?
  6. 600 XOHM Base Stations Ready To Roll In Chicago
  7. Sprint Close To Offloading Nextel
  8. Skype Takes Heat For Chinese Censorship
Forums » Sprint Announces 4,000 Layoffs, Store Closures
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TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast


edit:
January 18th, @12:08PM

Sprint is getting killed by AT&T and Verizon

Sprint just keeps having more and more problems. AT&T and Verizon are killing them in the wireless market. I guess their unlimited data plans aren't helping them get and keep customers.

But closing down stores is a desperate measure. It cuts down on their ability to grow their customer base. When a company starts doing that they are on a downward trend to a sellout to a competitor.
moonpuppy

join:2000-08-21
Glen Burnie, MD
·Verizon Online DSL

Re: Sprint is getting killed by AT&T and Verizon

said by TK Junk Mail See Profile :

Sprint just keeps having more and more problems. AT&T and Verizon are killing them in the wireless market. I guess their unlimited data plans aren't helping them get and keep customers.

But closing down stores is a desperate measure. It cuts down on their ability to grow their customer base. When a company starts doing that they are on a downward trend to a sellout to a competitor.
You can close stores if you have too many of them.

Their plans might be great but poor customer service trumps that.

jsimmons
Premium,MVM
join:2000-04-24
Falls Church, VA
·Cox HSI

Re: Sprint is getting killed by AT&T and Verizon

said by moonpuppy See Profile :

Their plans might be great but poor customer service trumps that.
I can't see this move improving customer support or billing. Not a good sign to me. Time to think about a switch to Verizon when my contract period ends.
--
"Everything should be made as simple as possible, but not one bit simpler."- Albert Einstein

en102
Canadian, eh?

join:2001-01-26
Valencia, CA
·RoadRunner Cable
·DSL EXTREME
·DSL EXTREME

Re: Sprint is getting killed by AT&T and Verizon

Most of Sprints problems are internal

a) Customer service
b) Billing
c) PR - Nextel iDEN subs are bleeding vs. migrating

Sprint's overall pricing is decent. I use their Nextel, which basically works, but coverage isn't good (esp in Northern Michigan and Canada).

Sprint's been acting like 2 companies, and their bottom line is suffering for it.
--
Canada = Hollywood North

tc1uscg

join:2005-03-09
Saint Clair Shores, MI
·Comcast
·WOW Internet and C..
·VoiceEclipse

said by jsimmons See Profile :

said by moonpuppy See Profile :

Their plans might be great but poor customer service trumps that.
I can't see this move improving customer support or billing. Not a good sign to me. Time to think about a switch to Verizon when my contract period ends.
So, why would you switch? How many times have you called a CSR in the past year? Was it resolved. See, it's people like you that's the problem. I'm sure as soon as your new car blows a bulb or idles ruff, you don't run down to your local dealer to turn in your car and run across the street to buy another brand do you? If you have good coverage at a good price, it's pretty STUPID to do and say what you are saying. So, unless your talking smack, why not just go terminate your contract now, go pay more for less and be done with it?

HM250

@ilpcs.com

Re: Sprint is getting killed by AT&T and Verizon

I work for a Sprint Retail store and yea the plans may be great, but I am going to have to agree that outsourcing the customer service employees that you get when you dial *2, the problems you have when you go from a corporate to an affiliate market (or the other way around), and the way that they bill you in advance a month is a bunch of crap. I have had both T-Mobile and Cingular before they became AT&T and I was much more satisfied with their service. I and all of my employees know and understand why we are potentially losing our jobs.
Big Dawg 23

join:2002-03-27
Northfield, MN
·Charter Pipeline

I have several co-workers who are on Sprint. I hate talking to them on there cell because the quality is so horrible. Yes they have pricing but the CS sucks.

One of person had her bill on auto pay. Her corporate card expired and was sent a letter stating to update it. She called 12 times to correct this. 5 Supposed supervisors assured her that the issue was resolve. Then on a business trip received a threatening call that her phone was being shut off for non payment. They had the correct number the whole time and never activated it to allow for Payment. They also had authorization to pull the past due. This was all resolved after a letter was emailed to the then CEO, CFO, COO and many others I gave her from the Consumerist site.

That is not the only person her husband decided to switch from T-Mobile just for mobile to mobile minutes. That was a disaster. The store and CS gave him pricing that was changed when his bill arrived. Instead of going up $5 + Tax it rose $15 + tax.

I can give you many more examples of how bad the customer service is are but why waste my time. I have an option through work for $89.99 unlimited everything thru Sprint. I will stick to my high price Verizon with better service, customer service and overall quality.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

said by TK Junk Mail See Profile :

I guess their unlimited data plans aren't helping them get and keep customers.
I think that hardcore data users are a small minority of their customers. Most people who go to a cell phone company want to be able to make and receive calls. From what I have heard of Sprint, they are not very good at this particular sport. Above all else, coverage is key. If you can't even use a phone with them, there is no point.
said by TK Junk Mail See Profile :

But closing down stores is a desperate measure. It cuts down on their ability to grow their customer base.
Do a lot of people shop the stores though? Perhaps they think they'd do better selling service through their website instead?
--
Only SHATNER is Kirk.

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast


edit:
January 18th, @04:03PM

Re: Sprint is getting killed by AT&T and Verizon

said by pnh102 See Profile :

Do a lot of people shop the stores though? Perhaps they think they'd do better selling service through their website instead?
I can't say for all their stores. The one nearest me in a strip mall does decent business. There always seems to be customers in there when I go by.

And when I go to a regional mall, the Verizon store is always packed. In fact, the last time I went in there, they had a "take a number" system to wait on people they are so busy.

So, while I and others do a lot of business and shopping on the web, there evidently are still a lot of people that like to get hands on a phone 1st before buying.

As for myself, I did a lot of research and checking online before I renewed my cellphone contract, but I did go to the Verizon store to check out the different models of phones in person before I made my decision.
--
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tapeloop
Light, sweet triceratops.
Premium
join:2004-06-27
Airstrip One

said by pnh102 See Profile :

said by TK Junk Mail See Profile :

I guess their unlimited data plans aren't helping them get and keep customers.
I think that hardcore data users are a small minority of their customers. Most people who go to a cell phone company want to be able to make and receive calls. From what I have heard of Sprint, they are not very good at this particular sport.
I didn't think there were that many data users either, much less enough users sucking up enough bandwidth to cause that significant an impact.

You're close on your assessment of their calling service. More to the point though is how poor they are at customer service (remember those pesky "problem customers" they axed?), and more specifically billing concerns.

Relatively speaking, their data service is pretty good.
--
"I love mankind. It's people I can't stand."

--L. van Pelt
xenophon

join:2007-09-17
·Sprint Mobile Broa..

said by TK Junk Mail See Profile :

I guess their unlimited data plans aren't helping them get and keep customers.
Well actually Sprint is outselling Verizon 2:1 on data cards, but that's a small part of the business compared to voice. Sprint is clearly better at data.

And Sprint's iDen side is losing customers, not the CDMA side. The churn rate of Sprint's CDMA side is lower than ATT. The iDen/Nextel side is the serious issue.

FicmanS
Premium
join:2005-01-11
Brownsburg, IN
clubs:
I'm guessing my less than stellar sprint phone connection isn't getting any better anytime soon then...


TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

»finance.yahoo.com/q?s=S

»www.sciam.com/article.cfm?id=spr···ble-afte
That was the biggest single day drop Sprint has had in 30 yrs.
--
Internet News
My BLOG
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tc1uscg

join:2005-03-09
Saint Clair Shores, MI
·Comcast
·WOW Internet and C..
·VoiceEclipse


edit:
January 19th, @08:12AM

said by TK Junk Mail See Profile :

Sprint just keeps having more and more problems. AT&T and Verizon are killing them in the wireless market. I guess their unlimited data plans aren't helping them get and keep customers.

But closing down stores is a desperate measure. It cuts down on their ability to grow their customer base. When a company starts doing that they are on a downward trend to a sellout to a competitor.
Sprint doesn't keep having problems. It's the old problem catching up with'em. I agree with your last remark to some degree. Sprint isn't desperate, they just have to make it's investors sit down and STFU. I know LOTS of people who use sprint in my area. I have 4 sprint phones myself. I had 1 billing issue 6 years ago and it got taken care of. I even have a teen who "text" some kind of code to a online ad and got hit with a 10.00 a month charge. Calling sprint got it removed, blocked and it wasn't painful at all so I think all the people who think Sprint is a crappy company are a bunch of crybabies. I've had more problem with Chrysler financial and credit card companies then Sprint. I see Sprints biggest problem as the billing software they use. Too bad we can find out who it is so people can drive down it's stock into the ground. Keep going Sprint.. I'll stick with you till the day the last light is turned off.

nightdesigns
Gone missing, back soon
Premium
join:2002-05-31
AZ
·Cox HSI

Closing stores...

Crap, not like there's that many Sprint stores around me in the first place.

I will say, they must be desperate for more business. In December, I received 12 phone calls from sales asking if I wanted to add a 3rd line. It wasn't until I threatened to cancel my account for harassment from the sales department that they stopped calling me.

Honestly, I only stay with Sprint because of a 20% corporate discount I have from a company I haven't work for in 5 years.
--
This Space for Rent...
moonpuppy

join:2000-08-21
Glen Burnie, MD

Re: Closing stores...

They did the same thing with me. Kept demanding I take their wireless card as it was such a great deal.
dcurrey

join:2004-06-29
I hate when they do that. They keep doing it to me. Calling me on my cell wanting me to add services. I am pretty sure I can figure out for myself if I need something added. Don't keep calling me wasting my time and probably my minutes.

nightdesigns
Gone missing, back soon
Premium
join:2002-05-31
AZ
·Cox HSI

Re: Closing stores...

said by dcurrey See Profile :

and probably my minutes.
Ah, but you've missed their little speech about how this call doesn't use any of your minutes...
--
This Space for Rent...

insomniac
Oh Yeah
Premium
join:2002-09-22
Naperville, IL
clubs:
·AT&T Midwest

Funny, I've been a Sprint customer for 7 years and haven't received such a call in about 3 years...

Yell enough, insist you get put on all internal do-not-call lists, and they'll go away forever.
--
If everything seems to be going well, you've obviously overlooked something.

Swingerhead
Premium
join:2004-04-06
Richmond, VA
·Verizon FIOS
·Comcast

Brick and Mortar,why?

Why in the world do you need to go in a brick and mortar shop anyway for a phone? Check it out at Best Buy, get it there, one of the quadrillion kiosks in the mall, or online direct from Sprint. One actualy Sprint store in each area would be plenty to handle the annoying pay in person people and service issues.
brandpc

join:2003-08-25
Canton, CT
·Sprint Mobile Broa..

Re: Brick and Mortar,why?

Have you seen the contract termination fees those places will charge you? Plus, they have very little power -- they have their little kiosk processing system and thats basically it.

Its pathetic. I hate dealing with BB -- I cant ask the people there any type of advanced question. I wont even bother with a non-corporate store if I have an issue. They are there for a sale, and nothing else.

NOCMan
Verizon Fios User
Premium
join:2004-09-30
Flower Mound, TX

Will not help

With an average of 50k per employee and 15k of benefits per employee sprint is only saving between 200-400 million dollars.

If they have 125 stores making less than they cost to operate I'm sure it's worse at the rest of them as well.
--
Mac Chatter
»www.macchatter.net
Taget

join:2004-07-29

Last thing they need...

A few weeks ago called to deactivate a phone my father had lost. They had this stupid voice menu which makes me miss the days of the simple numbered menus. When I said "lost telephone" or "stolen telephone" I was informed they were closed for the holidays and hung up on. Very annoyed I tried calling up and sayiing "cancel service." That forwarded me to a voice-mail which informed me that the number was out of order.

Finally figured out the one answer that would get me to a human "new phone activation" since that is their money ticket. And I finally got a human who deactivated the phone. I asked if any phone calls had been made with the phone. I was informed there was no way of telling me. I asked about games (a Pacman demo, and onr or two others that they charge $10 a month for) that every time we call never seem to disappear from the bill. This time they didnt't even pretend to care. She told us she had no power to remove the useless games.

And best thing is since Sprint (unlike at&t, verizon, and t-mobile) has no real prepaid on their cdma network and doesn't activate phones from other cdma partners including their own MVNOs the only way to replace a phone without being completely ripped off is getting a new one on ebay or craigslist.

I wish he hadn't stupidly extended his contract a year ago. All I can say is thank god I'm on t-mobile.

xxA4Hxx

@comcast.net

Re: Last thing they need...

I think the people who are getting lots of discounts on a monthly statement and complaining is what is dragging them in the mud to make profit. With this new standard for data service coming out. They are tight on money and really you get better service at a third party like Radioshack. They being the only one with good data service and unlimited. They can not fail to survive or I going to be pissed because I want to sign up for their data service due to truly unlimited. The company if they can get this new technology launched and put in most of their markets could let them down the road open new stores where they once closed if the technology takes off.

-illusion

cpayne5

join:2004-01-06
Amissville, VA
·Sprint Mobile Broa..

said by Taget See Profile :

... And best thing is since Sprint (unlike at&t, verizon, and t-mobile) has no real prepaid on their cdma network ...
Virgin Mobile prepaid services uses the Sprint CDMA network.
--
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jtel

join:2005-06-28
Bristol, RI
·Cox HSI

said by Taget See Profile :

And best thing is since Sprint (unlike at&t, verizon, and t-mobile) has no real prepaid on their cdma network

Boost Unlimited, is a monthly prepaid service running on the Sprint CDMA network unlike 'Boost Mobile', now has 500,000 customers. Its not a pay per minute plan though if thats what you meant. They added over a quarter million Boost Unlimited customers in the 4th quarter and its only available in about 12 cities so far.
mjbuzby

join:2004-12-11
Cockeysville, MD

Re: Last thing they need...

will they be able to get out of their leases? tweeter tried to do the same. they were not successfull doing so and went bankrupt.
Taget

join:2004-07-29

said by jtel See Profile :

said by Taget See Profile :

And best thing is since Sprint (unlike at&t, verizon, and t-mobile) has no real prepaid on their cdma network

Boost Unlimited, is a monthly prepaid service running on the Sprint CDMA network unlike 'Boost Mobile', now has 500,000 customers. Its not a pay per minute plan though if thats what you meant. They added over a quarter million Boost Unlimited customers in the 4th quarter and its only available in about 12 cities so far.
They have no Sprint prepaid phone that you can go to bestbuy and activate which is what I was referring to. They certainly won't activate a phone of their MVNO partners like Virgin. As for Boost's new CDMA service. I haven't seen it yet. If those phones are compatible with Sprint post-paid that would be nice. But wouldn't hold my breath on it.

AYA

All I have to say is Sprint is the worst ever in their billing and customer service!
RchrdEllis

join:2007-06-11
Narberth, PA
·Verizon Online DSL

said by Taget See Profile :

And best thing is since Sprint (unlike at&t, verizon, and t-mobile) has no real prepaid on their cdma
I have been with Virgin Mobile for better than 5 years and they piggyback on Sprint's "Nationwide Network". They have done an excellent job of of building out a network "from scratch". It has I am sure been a long, expensive process. Any re-sellers who support them are I am sure welcome additions. Maybe they don't get %100 profit on their charges, but they are recouping their network investment. Based on other discussions on this site I feel that they are managing to change their business model more to to say that we are a service provider, not just a phone store!

My Virgin Mobile service which I have had for better than four years has provided me with excellent service. I have had an unbelievable service plan with a pricing of $0.25 for the first 10 minutes in a day followed by $0.10 per minute afterward. Unfortunately this is currently a legacy plan which has currently been replaced by an $0.18 per minute plan. For my cell phone usage patterns, I would even consider this a reasonable expenditure. The Sprint network needs to survive because it is an (invisible) option to the other big two. No other network has opened it's facilities to third paty provider's. Please correct me if I'm wrong I don't care for anything but the truth!

Dezbend
Premium,MVM
join:2001-04-20

Where are the eliminations?

I have seen places that have a legacy-Sprint store 1 block away from a legacy-Nextel store. If they are eliminating these type of stores or even the "express" stores more power to them, but getting rid of service locations could lead to increased customer dissatisfaction.

I am not about to send my phone off to get the button fixed and wait 3 weeks nor do I want to drive for hours to the nearest store.

I don't have enough info to create an intelligent opinion, but there may be two sides to this story.
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kados
Hail Odin
Premium
join:2003-03-14
Watertown, SD
·Midcontinent Commu..
·Qwest.net

wow

I hope they don't close the store here, otherwise I'd have to deal with radiocrap or somthing.

I like my sprint service, and I also like going into the store, there is a VERY hot chick who works there.
--
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xxA4Hxx

@comcast.net

Re: wow

lol

-illusion

Ps. would say more but I figure I keep the rest to myself.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

I hope the mofos "streamline" themselves out of business

I wouldn't piss on Sprint if the building was burning.

NASCAR needs to start looking for a new sponsor.

seven001

join:2002-07-24
Richmond, KY
clubs:

Think we know where this is heading...

Merger with Verizon. I'm betting we'll hear something along those lines within the next year. Any takers?

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: Think we know where this is heading...

said by seven001 See Profile :

Merger with Verizon.
No way. Verizon doesn't need Sprint as their native markets pretty much overlap. They also don't need the headaches from already disgruntled Sprint customers. Don't forget either that their stock and profitability will take a huge hit should they decide to buy out Sprint.

Verizon would be better served by buying out Alltel instead.
--
Only SHATNER is Kirk.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

Re: Think we know where this is heading...

well, which raises the spectre that the same investment group that got Alltel, might buy and combine sprint with alltel. Now THAT would be a threat to verizon.
cmarrero

join:2002-01-29
Newark, NJ
·Vonage

Re: Think we know where this is heading...

inteller @ 18th Jan 02:13PM:Re: Think we know where this is heading...well, which raises the spectre that the same investment group that got Alltel, might buy and combine sprint with alltel. Now THAT would be a threat to verizon.

That would be TPG Capital and the buyout arm of Goldman Sachs

robbob340
dslr
Premium
join:2001-02-15
Wichita, KS
clubs:
Or just buy pieces of Sprint, like Dallas/Ft Worth, and some other markets where Alltel does not have native coverage.
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pepperxn

join:2001-02-21

said by seven001 See Profile :

Merger with Verizon. I'm betting we'll hear something along those lines within the next year. Any takers?
No way. If so, we'll probably see T-Mobile go to AT&T then.

I have read that Qwest is interested in Sprint's fiber operations. That's what Bankers are saying. Qwest has said that they haven't ruled out buying a company to increase business. Don't remember the way it was worded. One of the major shareholders in Sprint wanted the company to spin off/sell their fiber operations. If Qwest does buy it, I expect it to be mostly a stock deal, since they only have $1 billion in cash, and it would probably hurt them if they spent most of their money. So, I wouldn't be surprised if we see Qwest and Sprint helping each other this year.

StarFish267

join:2005-11-25
Fort Worth, TX

CallCenters

This is a good thing, It means they are closing the offices in the Philippines and India. Made In the U.S.A.

nutcr0cker

join:2003-04-02
Chandler, AZ

Re: CallCenters

LOL...that means in the true vision of our GOP presidential frontrunner McCaniac they would primarily layoff American workers eiher ways Americans should not be doing such menial jobs
ricep5
Premium
join:2000-08-07
Jacksonville, FL
·Comcast Formerly ..
·AT&T CallVantage
·AT&T Southeast

Much Needed

> Too much retail overlap between Sprint and former Nextel stores
> Too long to come out with a iDEN replacement
> Too long to kill the back office overlap

The last Sprint event I attended, they were all deer eyed worrying over the next big one. (layoffs)

They will gladly add phones to your personal or business account, but put you though grief to try to drop one.

Getting the Philippine call center asking me if I want more phones on the account. I marked the number and don't answer anymore.

Sounds like the old CEO wanted Nextel for the subs to cross market. Unfortunately they didn't have a product to place them with.

On the upside they are more flexible with the service but usually have to share product with Verizon. Few exclusives.

They will survive, but they have to differentiate themselves a little better. If they had a national ad program featuring their broadband plans and not handsets, I wonder what the results will be.

NiceGuyNY21

join:2000-10-15
Buffalo, NY

edit:
January 19th, @04:37AM

Re: Much Needed

duplicate post...delete/ignore

NiceGuyNY21

join:2000-10-15
Buffalo, NY
·RoadRunner Cable

said by ricep5 See Profile :

Getting the Philippine call center asking me if I want more phones on the account. I marked the number and don't answer anymore.
THIS is really fuggin annoying....at least once a week they call me... when i call the # back at least it's nice enough to tell me what they were calling for (adding more lines) and then i hit the "please dont call me in the future im not interested option" and they call me again the next day...

ANNOYING !
dcs2281

join:2004-09-14
Santa Clarita, CA

To Bad for the Employee's

To bad the working folks end up paying for the Corporate mismanagement. I would switch, but AT&T/Verizon/T-Mobile do not provide service here, so I hope they can clean it up, regroup, and provide service. The few times I called Customer Service I never experienced any of the negative things said about them. maybe I have just been lucky.
evoxfan
Waiting On Dsl Or Cable

join:2004-02-12
Daleville, AL
·Sprint Mobile Broa..


edit:
January 19th, @08:13AM

Re: To Bad for the Employee's

said by dcs2281 See Profile :

To bad the working folks end up paying for the Corporate mismanagement.
Well said. I am one of the unlucky souls that does my job everyday hoping that I still have that job tomorrow. Sad thing is if they axe me, the network will suffer greatly. I am the only RF tech who is proficient at troubleshooting EVDO for my entire market as well as the neighboring market. And as you said, it is due to poor upper-management for so long now.
--
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longstreet

join:2004-11-14
Salt Lake City, UT

hum

AT&T and Apple is killing them with the iPhone
stridr69

join:2003-05-19
San Luis Obispo, CA

Re: hum

I doubt it.
Espically with that really (sic) fast "edge" network that ATT has. As in slower than my T-Mobile edge network.
I also have Sprint-great coverage and I can use Verizon's network in a pinch(forced roaming anyone?) And Sprint is the only 3g carrier in San Luis Obispo/Santa Barbara counties.

Sprint Customer

@verizon.net

Got Management

I'm a Sprint Customer. I have been for years. What they need is some line management. Their web site is non-functional. Indian customer support is a joke.

The one thing you can't ever find at Sprint is a manager. Automated voice menu hell, almost incomprehensible Indians reading from scripts, web pages that are pretty but the software doesn't work, incomprehensible marketing bull, but no one who really seems to care about the company or making it better. (In other words typical American big company management.) It took me 6 hours to change a cell number, my friend took 6 minutes on T-Mobile. Impressive.
Forums » Sprint Announces 4,000 Layoffs, Store Closures


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