NASCAR title sponsor circling the drain
The customer erosion took a toll on Sprint’s sales, which dipped to $8.4 billion, down from $9.8 billion in the fourth quarter a year ago.
Sprint said it lost $1.6 billion, or 57 cents per share, in the final three months of the year. This compares with the $29.5 billion, or $10.36 per share, loss Sprint recorded in the same period a year ago after taking a non-cash accounting write-off of $28.7 billion.
01/26/09 Sprint Nextel Corp. is eliminating about 8,000 positions in the first quarter as it seeks to cut annual costs by $1.2 billion.
The nation's third-largest wireless provider said Monday it will complete the layoffs, which comprise about 14 percent of its 56,000 employees, largely by March 31. About 850 of the reductions are voluntary and the company said it expected a first quarter charge of more than $300 million for severance and other costs.
The company said it is also suspending its 401(k) match for the year, extending a freeze on salary increases and is suspending a tuition reimbursement program.
"Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment," Chief Executive Office Dan Hesse said in a news release. "Our commitment to quality will not change."
With it's name all over the NASCAR series in the hope of winning new customers, Sprint Nextel lost a net of more than 3 million subscribers in the previous four quarters, most of them valuable customers who pay a monthly bill.
11/24/08 Suffering from a continuing customer exodus, Sprint Nextel posted a $326 million loss for its third quarter.
During the third quarter Overland Park, Kan.-based Sprint Nextel said 1.3 million wireless customers left the company with roughly 1.1 million of them falling into the “postpaid" category. Postpaid customers are ones that sign up for annual plans and pay monthly. According to MarketWatch, Sprint has lost more than 4 million customers during the past two years – so what is the NASCAR sponsorship doing for them? Answer – absolutely nothing..
Sprint said it expects to lose more postpaid customers in the fourth quarter.
For its third-quarter, the nation’s third largest wireless provider posted a net loss of $326 million, or 11 cents
01/20/08 Sprint Nextel said Friday it plans to lay off 4,000 workers, close 125 of its retail locations and restructure operations in an effort to save $700 million to $800 million by the end of 2008.
The restructuring is the first move for new CEO Dan Hesse, who jointed Sprint Nextel Dec. 18. It also plans to take a goodwill write-down. The company said in a statement that it anticipates “continued downward pressure on subscriber trends, revenues, and profitability in 2008."