Sprint to cut costs by $350 million, plans to eliminate up to 2,500 employees

Sprint Nextel has announced that it will reduce labor costs by at least $350 million in the fourth quarter, resulting in the elimination of 2,000 to 2,500 employees. The mobile carrier says the cuts will affect both internal and contracted employees, but that it will take action to ensure that there is no impact on customer service, according to a press release.

Sprint suffered financially last quarter, as we reported. The company widened its loss by 47 percent to $478 million. It lost 801,000 subscribers and its revenue dropped 9 percent.