Spring is preparing to cut as much as $2.5 billion in costs in the next six months and, in a memo to the company’s staff, Tarek Robbiati, who is Sprint’s new chief financial officer, said the company would be an external hiring freeze.
“We have begun an effort to significantly take costs out of the business so the transformation of the company will be sustainable for the long-term”, said a Sprint spokesman.
Sprint had around 31,000 employees in March. “The main thing to consider when requesting to spend money is to take an owner’s mindset by treating every dollar as if it were your own”.
“This is cutting cost to the bone”, says Roger Entner and analyst with Recon Analytics. “What Sprint needs is true market differentiation”.
It’s a delicate balancing act for Sprint, which is burning through cash as it tries to not only match T-Mobile promotions, but expand a network that has historically been at the tail end of most network performance studies. In April he announced an initiative in which Sprint technicians would make house calls to try and help people purchase and set up their phones. The operator is using carrier aggregation to get more out of its 2.5 GHz spectrum. He’s also cut operating costs, helping boost earnings before interest, taxes, depreciation and amortization to $2.08 billion in the fiscal first quarter that ended June 30.
VatorNews has reached out to Sprint for confirmation and comment on this report.
Only in the past couple of years have they made significant strides to turn that around and improve their image in the eyes of consumers, but T-Mobile, Verizon and AT&T are moving just as fast. CEO John Legere announced a data breach through partner Experian that could impact the personal data of around 15 million customers or potential customers.