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Sprint Cuts Its Business Unit

Following last week's restructuring announcement by AT&T Corp. (NYSE: T), Sprint Corp. (NYSE: FON) has followed suit with news of job cuts and a third-quarter charge (see Sprint Takes Charge, Cuts Jobs and Headcount: Job Count Friday).

Sprint is axing 700 jobs, primarily in sales and support, from its Business Solutions division as it focuses more on "multi-product bundles, IP, and wireless solutions," according to a statement from the carrier.

It will also record a non-cash charge in its third quarter as it reduces the value of its long-distance network, exactly as AT&T is doing (see AT&T to Take $11B Charge). Sprint will announce the size of the charge when it issues its third-quarter figures next Tuesday (October 19).

Sprint also expects to announce an "adjusted EPS [earnings per share], which excludes network impairment, restructuring, and certain other one-time items," higher than the average analyst expectation of 21 cents.

The news sent Sprint's share price up 18 cents (about 1 percent) to $20.48 in early-morning trading.

— Ray Le Maistre, International News Editor, Light Reading

sanjose 12/5/2012 | 1:10:36 AM
re: Sprint Cuts Its Business Unit Sprint is in the final stages of preparing a sell off. Brutal competition , failed atm advantages and management missteps are now apparent.

Employees are going thru a brutal reorganization - out with the old and lets get rid of possible pension problems. Combine that with the soon to be restructured medical plan - employee fends for himself. You have a thoroughly demoralized workforce.
SIVROCX 12/5/2012 | 1:10:19 AM
re: Sprint Cuts Its Business Unit One more great opportunity for Dave Huber, don't ya think...Maybe a reverse split of 100 to one will allow Dave to get Sprint for chump change..Ugh +£
materialgirl 12/5/2012 | 1:10:19 AM
re: Sprint Cuts Its Business Unit Sprint may be ready to sell, but who would want to buy?
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