Sprint Nextel Cuts 8000 Jobs

January 26th, 2009 at 12:00 am
 


sprint nextel

If you haven’t got it yet, today’s theme for posts are about layoffs.  First came news from Microsoft, the largest tech company, then from across the Atlantic, Philips, Europe’s second largest consumer electronics firm saying that they’ll be cutting 5000 and 6000 jobs respectively.  As if that wasn’t enough, Sprint Nextel is also announcing some lay offs to the tune of 8000 employees.

So far that’s the largest number we’ve seen today.  Obviously, the reason for this is the global economic recession which  drastically affected Sprint’s performance during the last quarter. 

"Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment," said Sprint CEO Dan Hesse. "We continue to improve the customer experience and these improvements are reflected in much higher levels of satisfaction in customer surveys and in independent performance tests. Our commitment to quality will not change." [Sprint]

However it’s no surprise that Sprint is losing money to the recession.  Sprint has not been delivering good service as compared to it’s US competitors, like AT&T.

Still, Sprint does have some ammunition left to fight the economic meltdown.  They still have contracts to distribute the Samsung Instinct, Blackberry Curve and in the pipeline, the Palm Pre.  Hopefully these products will turn around the company’s profits.

So that’s another 8000 people joining the ranks of the unemployed.   It’s hard to say if Sprint will see a better year this year regardless of their offerings, they still have the iPhone to beat and consumer confidence in their service has suffered pretty bad.