The telecom giant Sprint Nextel on Friday announced that it will eliminate more than 4,000 positions, close 125 of its stores, and do away with 4,000 third-party distribution points, in an effort to cut costs following the release of lackluster subscription numbers.
After losing 683,000 post-paid subscribers and 202,000 “traditional pre-paid users,” in the fourth quarter of 2007, and expecting “continued downward pressure,” the company will phase the cuts in over the next few months, in an effort to cut costs by $700-800 million by the end of 2008, the company said. The employee cuts, which will include both management and non-management positions, will take place throughout the first half of 2008.
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