& cplSiteName &

Sprint's New Boss Plans Cost Cuts

Sarah Thomas
8/12/2014
50%
50%

Just one day into the job, Sprint's new boss Marcelo Claure is house hunting near the company's Overland Park headquarters and preparing employees for cost cuts and a revived aggressive competitive strategy. (See Hesse Out, Claure In: Sprint Is Son's House Now!)

The former Brightstar Corp. CEO will hold a company-wide "town hall" meeting on Thursday to outline his vision for the struggling wireless company. With an acquisition of T-Mobile US Inc. off the table, Sprint Corp. (NYSE: S) has to find a way to compete in the market alone, especially against T-Mobile itself, whose boisterous CEO is already waging verbal warfare against Sprint. (See DT Wants Spectrum Favors; Legere Wants Sprint's Slot, T-Mob's Legere Unleashed: 'Total Chaos at Sprint' and Sprint Drops Bid for T-Mobile – Reports .)


Vote for what you think Claure needs to do with Sprint in our new poll here on Light Reading.


Claure didn't share specifics on Sprint's future, but he did say that its new strategy will have to include competing aggressively in the marketplace, building on comments outgoing CEO Dan Hesse made around experimenting with dropping prices on the carrier's most recent earnings call. (See A Short History of Hesse and Sprint, T-Mobile: The Price War's On.)

The plan could also include more job cuts to become more cost efficient. In the memo obtained by Bloomberg, Claure writes, "In the short term, our success will come from our focus on becoming extremely cost efficient and competing aggressively in the marketplace. The management team has been working closely with the board to outline the future strategy of the company."

Claure also alluded to the company's scrapped merger plans with T-Mobile, noting "You have probably seen the many media reports speculating about Sprint's future. As I have already said, consolidating makes sense in the long term but, for now, we will focus on growing and repositioning Sprint."

— Sarah Reedy, Senior Editor, Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
8/13/2014 | 4:01:28 PM
Re: Buyer's market
I imagine he gets paid enough to afford several McMansions and a decent-sized private jet to commute from Kansas to Cali.
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/13/2014 | 3:47:39 PM
Re: Buyer's market
No, there's a rumor that Son would like Sprint HQ to move to California, they've said they'll stay in KC so far.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
8/13/2014 | 12:09:48 PM
Buyer's market
It will be easier for Mr. Claure to find a house when all those liberated employees start putting up "for Sale" signs. But didn't Sprint also say it was moving out of Overlord Park?
DanJones
50%
50%
DanJones,
User Rank: Blogger
8/12/2014 | 4:57:44 PM
Re: Where's the mojo?
Well they *did* say his first priority would be to focus on the network when the changeover was announced....
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
8/12/2014 | 3:38:20 PM
Where's the mojo?
Sprint needs to find the mojo it had back when it became the first to move to an all-fiber network and boasted the voice quality was so good that you could hear a pin drop.  Having heads roll is just a quick way for a new suit to cut costs. But where's the vision?
Mitch Wagner
50%
50%
Mitch Wagner,
User Rank: Lightning
8/12/2014 | 1:00:52 PM
Re: Claure's in charge
Now that I think of it, more naps would be a good strategy. 
Mitch Wagner
100%
0%
Mitch Wagner,
User Rank: Lightning
8/12/2014 | 12:19:14 PM
Re: Claure's in charge
Not impressed by this leaked vision. Layoffs have been SOP for companies at a crisis point for decades -- it's like a medieval doctor bleeding the patient to get rid of evil humors. 

And as for "competing aggressively in the marketplace" -- what did we expect? He'd be in favor of long naps?

 
billho888
50%
50%
billho888,
User Rank: Light Beer
8/12/2014 | 12:01:18 PM
Re: Claure's in charge
My 2 cents - he has to expedite 2.5. Hitting 100M POPs by EOY 2014 isn't that great though some mkts have 2X carrier agg. T-Mo is putting up and promoting its Wideband LTE as a speed differentiator. Though 2.5 doesn't have propagation as PCS, will they throw more capital down to bring about real speed across the native footprint?  Tough call but the Chairman is all about speed and openly touted that he wants to bring speed to the US. 

More pressing than M&A is marketing and acquiring customers in late Q3 and Q4. 
billho888
50%
50%
billho888,
User Rank: Light Beer
8/12/2014 | 11:45:18 AM
Re: Claure's in charge
It'll be interesting to see how aggressive he'll lead the company in the 2.5 ntwk and customer acquisition. 
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
'Most Wanted' Kobi Comes Home
Ray Le Maistre, Editor-in-chief, 8/23/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
Arista Banned From Importing Products – Cisco
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/23/2016
How the Padres Hit an IoT Home Run
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.