US News: Sprint Nextel to streamline operations

US News: Sprint Nextel to streamline operations

Sprint Nextel has announced initial plans to streamline its business as part of an ongoing review of its operations and market approach.

While Sprint Nextel reported 500,000 new subscribers through wholesale channels, 256,000 new Boost Unlimited users and 20,000 new subscribers within affiliate channels in the fourth quarter, these gains were offset by net losses of 683,000 post-paid subscribers and 202,000 traditional pre-paid users.

At the end of 2007, Sprint Nextel served a total subscriber base of 53.8 million subscribers.

Anticipating continued downward pressure on subscriber trends, revenues, and profitability in 2008, Sprint Nextel plans to streamline the business in coming months.

These plans call for job reductions across the company, including approximately 4,000 internal positions, and reduced utilisation of outsourced services and contractors.

The company also expects to eliminate more than 4,000 third-party distribution points and to close approximately 125 of its 20,000 company-owned retail locations.

The plan is expected to reduce Sprint Nextel’s internal and external labour costs by an annualised rate of $700-$800 million by the end of 2008.

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