Sprint announced they plan to cut between two & two-and-a-half billion dollars in the next six months, earlier today.
The company says the cuts are necessary to “transform business” and “fuel growth”.
Sprint released the following statement to 41 Action News:
“Recently we communicated with Sprint employees to update them on the progress we are making to transform our business. We discussed the improvements we have made to many of our key metrics including net adds, churn, and our network. We are laser focused on creating a superior network, being the price leader and providing an amazing customer experience. We are pleased that our business has momentum and we are heading in the right direction.
We also shared with our top leaders that in order to be successful, we must change our cost structure so we can fuel our growth and operate more efficiently. We have begun an effort to significantly take costs out of the business so the transformation of the company will be sustainable for the long-term. 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.”
Experts say jobs will most likely be impacted but the company says it’s too early to say when and how many.
Economist Chris Butler said he's not surprised by Sprint's announcement.
“I think it actually kind of explains what their vision is and it is on the one hand, continue to attract customers and on the other hand, build out their network," Butler explained.
The company’s statement also said:
“This is a difficult process and we won’t make decisions lightly. Whatever decisions are made, we will inform our employees first and treat any impacted employees with dignity and respect.
“We believe the steps we are taking across our business are critical to ensuring Sprint is a viable, successful and sustainable business for the foreseeable future.”
Butler said for customers, the cuts may actually be a good thing.
“They already have attractive pricing, now they need to find a way to keep those new customers at Sprint and I think that's what this investment is all about.”
Just yesterday, Sprint announced they would be raising their unlimited plan by $10 a month, costing customers $70 instead of $60.
That change will go into effect October 16, 2015.
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Lexi Sutter can be reached at alexandra.sutter@kshb.com.
