Sprint Consolidates; Cuts 2,100 Jobs

Sprint Corp. is trimming about 2,100 jobs in a company-wide
restructuring move that affects the global markets, local telephone and
corporate divisions.

Sprint, badly hurt by the massive downturn in the telecommunications
sector, said cuts account for about 3 percent of its workforce and would
help eliminate overlaps and redundancies and a maintain competitive cost
structure. The company expects to absorb costs related to employee severance in the
range of $85 million. Annual cost savings is estimated at $145 million.

“Before today, each of Sprint’s primary divisions — Local Telephone,
Global Markets and PCS — had unique network, IT and customer credit,
billing and collection organizations. Going forward, the network operations
for Global Markets and PCS will be combined, along with the planning and
data operations in the Local Division, into a single organization,” the
Kansas City-based Sprint said.

The IT groups in each division will also be consolidated into a single
organization, along with the billing and accounts receivables functions in
each division, the company said.

The new entity would take care of providing Sprint’s network
infrastructure, integrated IT platforms and the billing and accounts
receivables fir local, long-distance, Internet and wireless network
capabilities, the company said.

The latest round of cuts was described by Sprint CEO William Esrey as a
“necessary step” in the face of an extended downturn in the sector.
“Eliminating jobs is a difficult decision…The consolidations we are
announcing today are a necessary step if we are to capitalize on our
strength, which is the ability to offer a complete portfolio of wireline and
wireless voice, data and Internet services under a single brand at a
competitive price,” Esrey said.

It is the second time in as many months Sprint has contracted. Last
month, the company trimmed payroll in its PCS division to reduce costs.
Sprint said it would place employees whose jobs have been eliminated in
other positions within the company and will work with outside employers in
local areas to identify suitable employment options.

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