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Sprint Cutting Severance Packages As Well As Employees

Not only will Sprint not be participating in the upcoming low band incentive spectrum auction, but the company is planning up to $2.5 billion in new cuts that will likely result in notable layoffs at the company. According to an e-mail sent to employees earlier this month, Sprint claims the cuts are necessary for more efficient operation and future growth as it looks to not only compete with AT&T and Verizon, but fight off aggressive market moves by the industry's hottest topic: T-Mobile.

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"We must change our cost structure so we can fuel our growth and operate more efficiently,” the company said. “It is likely that some jobs will be impacted but it’s premature to discuss the details as we are in the early stages of the process."

Not only is Sprint cutting jobs, it's cutting back on severance packages paid to those departing employees after January 30:
quote:
The new plan offers one week’s pay for each full year at Sprint for those notified after the end of January that they will be laid off, according to a letter to employees. Also, a $1,000 “additional separation lump sum payment is no longer part of the plan,” said the letter from Sandy Price, senior vice president of human resources at Sprint.
Existing employees meanwhile are being told there's going to be no pay raises this year, and CEO Marcelo bombards Sprint employees constantly with warnings to use less paper, consume fewer company resources, and "manage their own trash."

Most recommended from 87 comments


ILikeTech
join:2015-03-09

19 recommendations

ILikeTech

Member

CEO not getting a raise?

Its unfortunate for their employees but probably necessary to stay afloat, but what about the executives over there at sprint, what kind of sacrifices are they having to make??

Flyonthewall
@teksavvy.com

12 recommendations

Flyonthewall

Anon

BS

When a company tries to save money, but doesn't reduce executive salaries and bonuses, it's just more BS. More work piled onto less people, which makes a bad situation worse, but delivers short term stock growth which is all the myopic investors are concerned with.

If you are getting laid off, seek employment elsewhere. Companies that don't value their actual labor force aren't long for the world.
tpkatl
join:2009-11-16
Dacula, GA

9 recommendations

tpkatl

Member

Death Spiral

This is what companies do when they are about to die.
brianlan
join:2009-10-12
Garner, NC

6 recommendations

brianlan

Member

Sprint = Doomed

This company is only a hot minute from bankruptcy. Its probably best for the employees to get gone now while they can find alternative employment at their convenience for a few months.

rpeAMP
join:2000-12-02
San Antonio, TX

5 recommendations

rpeAMP

Member

They don't get it

There's nothing like saying "no pay increases" a year in advance to spur productivity and ingenuity. Companies like this don't get it. Find your star performers and give them incentive to hit it out of the park. Find the bottom-feeders and show them the door or offer a meaningful path to allow them to be productive again. Regardless of the company's financial health, no firm can afford to not compensate its top talent at market rates.