Light Reading

Sprint's New Boss Plans Cost Cuts

Sarah Thomas
8/12/2014
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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

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SReedy
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SReedy,
User Rank: Blogger
8/14/2014 | 8:55:19 AM
Re: Buyer's market
Yeah, I have to think that his "moving to OP" means buying a house there for his visits to HQ. I don't imagine it'll be his primary residence. I also haven't heard any more scuttle about HQ moving. My guess is a lot of the operations will move, but not the HQ officially. I do know that a lot of Sprint employees are still worried about their jobs, but that's been the case for years.
mendyk
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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
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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
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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
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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
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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
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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. 
SReedy
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SReedy,
User Rank: Blogger
8/12/2014 | 12:24:39 PM
Re: Claure's in charge
And, it appears Sprint has another mysterious event planned for Aug. 19 in NYC. Wonder if that will feature the new boss man?
SReedy
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SReedy,
User Rank: Blogger
8/12/2014 | 12:24:16 PM
Re: Claure's in charge
Sprint has held pretty strong against making price cuts, touting its unlimited message instead, so that will be a change for the operator, albiet a necessary one. I'm not sure it's willing/able to trade profits for subscribers in the way that T-Mo has, but it also might not a choice by now.

Also, this wasn't his leaked vision, but a promise of a vision to come on Thursday. Hopefully we can get those details then. 
SReedy
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SReedy,
User Rank: Blogger
8/12/2014 | 12:22:50 PM
Re: Claure's in charge
Well, Son certainly has the money to commit to expediting the roll out. That would help. And, its first partnerships with rural operators on LTE are starting to roll out. It's a lot of disparate spectrum that it's working with here.
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