Sprint's new CEO said the company will cut about 2,000 more jobs from its workforce, and there will be more changes in management too.
Sprint Corp. (NYSE: S) CEO Marcelo Claure said on the operator's fiscal second quarter call Monday that the new cuts are "regrettable" but necessary for Sprint to compete in the marketplace. These cuts are in addition to the layoffs that Sprint is already undertaking. The operator has cut more than 900 positions so far this year. (See Sprint Starts Layoffs, Will Take $160M Charge and Sprint Cuts 452 Jobs at Kansas HQ.)
Claure added that the operator has been undertaking a management review and could change more of its top team as well. "More changes are coming," the CEO promised.
Claure said he anticipates that the cuts will help Sprint whittle out $400 million in employment costs in 2015. It is planning to cut its total annual costs by $1.5 billion.
The company is continuing to spend, however, on its LTE updates. It is anticipating spending just under $6 billion on capital expenditures this year. Sprint CFO Joe Euteneuer said Sprint spent $1.5 billion on capex in the fiscal second quarter, largely driven by the Spark updates. This is down $300 million year-on-year, but the CEO and CFO both stressed that the operator is on track with or beating its LTE deployment targets. (See Sprint Promises 180Mbit/s 'Peaks' in 2015.)
"Our LTE is now available to over 250 million of the American population in over 500 cities," Claure said.
The operator expects to complete its 4G LTE buildout on the lower band 800MHz frequency this year, where it has the spectrum available. Its faster 2.5GHz Spark update now covers 92 million and is expected to hit 100 million by year's end. (See Sprint Goes Live With 8T8R in Chicago and Fanning Sprint's Spark in NYC.)
Despite the CEO's talk on the call of September and October being "record months," Sprint is still losing customers that sign up for a two-year monthly contract. The operator lost 272,000 postpaid subscribers in the quarter.
It did have 35,000 prepaid, or pay-as-you-go, subscribers sign on in the quarter. Wholesale additions of 827,000 subscribers came through Sprint brands such as Boost Mobile and MVNOs such as FreedomPop .
For the quarter, Sprint reported a operating loss of $192 million on revenue of $8.5 billion. Net loss per share came in at 19 cents. Wall Street analysts had been expecting a loss of six cents.
— Dan Jones, Mobile Editor, Light Reading