American wireless carrier Sprint has slashed 452 jobs in its Overland Park headquarters.
The job cut is part of a previously announced cost-cutting initiative. Sprint is owned by Japanese telecom venture SoftBank. Recently, Sprint dropped its plans to acquire T-Mobile US due to tough regulatory conditions.
Sprint is looking at more job cuts. “The local cuts were permanent and more would come. We anticipate additional reduction activity in the next few weeks and will provide an updated list of impacted positions,” said Sprint in a notice filed with the Kansas Department of Commerce on Friday.
For Sprint, America’s third-biggest telecom operator, the job elimination is the first installment of layoffs planned throughout October. It doesn’t cover any job losses outside the headquarters campus, though they are believed to be happening too, AP reported quoting The Kansas City Star.
Earlier this month, Sprint — in a filing with the Securities and Exchange Commission (SEC) said that it would reduce a number of jobs to better compete with its major rivals AT&T and Verizon. Sprint said it would book a $160 million charge in its fiscal second quarter to cover the layoffs, which include managers as well as other employees. It may take more charges for future job cuts.
Sprint slashed another 477 Sprint employees in Overland Park earlier this year, bringing this year’s job cut total to 929. Many of the employees in the first round of cuts had worked at a call center that was shut down.
Before the newly disclosed layoffs, about 7,500 people worked for Sprint in the Kansas City area, including some employees who weren’t at the headquarters. AP report said they’re among a total of about 33,000 people working for the company, down from 36,000 at the end of March and down from 38,000 at the end of last year. The decline accounts for layoffs, retirements and people leaving for other reasons, but the company also has hired new employees in some areas.
The job elimination is happening at a time when President Barack Obama is aggressively pushing for job creation in the U.S. to boost local economy.
Baburajan K
editor@telecomlead.com
