RESTON, Va.
(AP) — Wireless phone company Sprint Nextel Corp. said Friday it plans
to slash 4,000 jobs and close 125 retail locations in a move to gird
itself for an expected slowdown in subscriber growth and revenue.
The move aims 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 of other consumer
electronics retailers. The retail store closures represent 8 percent of
its 1,400 company-owned shops.
Sprint finished the year with 53.8 million subscribers.
The company also said it could record a goodwill impairment
charge in the fourth quarter to reflect the decreased value of its
assets and share price.
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