Sprint Cuts Its Business Unit
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