& 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. 
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
The Real-World View of Service Provider Innovation
Executives from Deutsch Telekom, Facebook, AT&T, Vodafone, and Masergy share insights from their company’s major transformation efforts and updates on key issues including open source, managed cloud connections and 5G.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for us the five essential capabilities for successful Digital Customer Engagement. Don’t miss!
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Interoute CTO on NFV's Maturity

5|13|16   |   06:46   |   (1) comment


Matt Finnie, CTO at international operator Interoute, explains how NFV has made life easier in terms of logistics and how Interoute can now enable a 'software-defined moment' for its customers.
LRTV Huawei Video Resource Center
UBBS 2016 Highlights

5|12|16   |     |   (0) comments


Highlights of Huawei's UBBS event in Hong Kong.
LRTV Huawei Video Resource Center
European 2020 Digital Agenda

5|12|16   |     |   (0) comments


Anacom's Fatima Barros discusses the plan to bring ultrafast broadband to Portugal by 2020.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
December 6-8, 2016,
June 16-18, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
Hot Topics
WiCipedia: Short Skirts & Back-Up Plans
Eryn Leavens, Special Features & Copy Editor, 5/20/2016
Nokia Plays It Smart With Major Mobile Devices Brand Deal
Iain Morris, News Editor, 5/18/2016
AT&T Plots Mobile 5G Tests in 2017
Dan Jones, Mobile Editor, 5/18/2016
Ingenu Revs Up IoT Rhetoric
Iain Morris, News Editor, 5/18/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
Animals with Phones
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.