After falling to fourth place, behind T-Mobile, in wireless carriers, Sprint is on the verge of cutting costs up to $2.5 Billion, with layoffs likely to follow.
USA Today reports that, according to The Wall Street Journal, that an internal memo, CFO Terek Robbiati wrote that job cuts are inevitable and that employees must be conscious of spending. He urges employees to treat every dollar as if it were their own.
Sprint confirmed to USA Today that it is likely that jobs will be impacted, but that it is too soon to discuss details, as they are still early in the cut process. A Sprint spokesperson said in an email that it is a difficult process, and that it will not be taken lightly. He assured that employees would be notified first of any changes that may impact them, and will do so “…with dignity and respect.” He went on to say that the cuts were critical in making sure Sprint, “…is a viable, successful and sustainable business for the foreseeable future.”
In April, Sprint announced a program that would allow Sprint technicians would take house calls, to help customers purchase and set up phones. They also implemented pricing plans, some which offered iPhones as low as a dollar, in efforts to attract more business.
After the announcement of cost-cutting, stocks in Sprint rose 3.46%. The biggest challenge for Sprint is competing against T-Mobile, their biggest mobile competitor. T-Mobile uses aggressive promotions and advertising, allowing them to overtake Sprint, as a top 3 wireless carrier.
T-Mobile is suffering from their own issues, after a data breach through Experian left personal data of 15 million people exposed. Info such as name, address, date of birth, Social Security numbers, and Licence numbers from those who applied for mobile services from September 1st 2013 through September 16th, 2015 are at risk, according to T-Mobile’s website.