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Sprint slashes 2000 jobs after poor third quarter

News by Luke Jones on Tuesday November 04, 2014.

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T-Mobile, AT&T, and Verizon have all announced their third quarter earnings recently, leaving us waiting on the last of the big four US carriers, Sprint. Whereas T-Mobile impressed, Verizon and AT&T stayed put, but for Sprint it is bad news once again as the nation's third biggest carrier slumped once more through a period and this time it is costing people jobs.

The company missed analyst expectations, although revenue did beat last year's total. Sprint tallied $8.49 billion in overall revenue, a year on year improvement over the $7.75 billion made during the same period in 2013. However, Wall Street was looking for a figure of $8.59 billion so the company's shares slipped by 19 cents per share.

Almost as important as revenue to a carrier is customers. T-Mobile, Verizon, and AT&T have all added more customers through the third quarter, but it is not a similar story for Sprint. The company lost a massive 272,000 customers through the three months, a continuing trend of shipping consumers to rivals. The consistent poor performance has meant Sprint's position as the third largest carrier in the United States is untenable. Indeed, T-Mobile's CEO John Legere says that company will surpass Sprint by Thanksgiving Day Holiday later in the month.

The poor quarter has proved costly for employees of Sprint as the company confirmed 2,000 jobs will be cut, shedding 5% of the overall workforce and saving $1.5 billion. It is unclear what other measures the company can take to sort out the decline, with man feeling the carrier lacks an identity. Consistent customer complaints and network issues have not helped matters and while Sprint has tried to fight back with competitive data plans, the company is fighting against and innovative T-Mobile on the rise, as well as old consistent names like Verizon and AT&T.

source: Sprint

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Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at degree level before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news, as well as overseeing the site's content and direction.

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