Sprint Nextel in downward spiral

Getting little value from its NASCAR sponsorship, Wireless phone company Sprint Nextel Corp. said Friday it plans to slash 4,000 jobs and close 125 retail locations to gird itself for an expected slowdown in subscriber growth and revenue.

Shares in the company, which has been struggling to keep up with rivals AT&T Wireless and Verizon Wireless, fell 26 percent in midday trading.

The job cuts and store closings aim to cut $700 million to $800 million a year in labor costs starting at the end of 2008. The company said it will book a charge in the first quarter to cover severance costs, but did not disclose the amount.

Sprint said it will also close 4,000 of its 20,000 third-party distribution points, such as stalls inside other consumer-electronics retailers. The retail store closures represent 8 percent of its 1,400 company-owned shops.