Telecommunications holding company Sprint corp. announced it plans to slash 452 jobs in its headquarters in Overland Park, Kansas, according to a report filed to the Kansas Department of Commerce on Friday, Oct. 17.
The company, which is also the third largest wireless carrier and a major global Internet carrier, also plans to lay-off additional workers outside of its headquarters.
The 452 job cuts, which included employees, from the portfolio management as well as the IT department of the company, however, is still reportedly going to be changed before the end of October or early November, according to a spokesman for Sprint, Scott Sloat.
"We are still working through the details so exact numbers and locations are not available at this time," Sloat said in a statement in Bloomberg.
Sprint had revealed that laying off workers will both benefit and hurt the company in a sense that it lessens employees to be paid as well as will hurt this coming holiday season, but remains a logical move to keep up with competition like AT&T and Verizon.
The company stated that the reduction in workforce would likewise hurt them, creating a $160 million expense given for employees for severance and workload loss in the second quarter.
The plan comes while Sprint Corp.'s new chief executive officer, Marcelo Claure, takes his position and tries to create a "leaner" business in the face of increasing competition.
Sprint has already cut 500 jobs after a restructuring of the company was done during the holiday season.
The layoffs are part of Claure's plans to regain their lost clientele, with Sprint significantly losing valuable subscribers since the term of former CEO Dan Hesse.
The company revealed that they would not be hiring additional staff anymore and reportedly do not plan to replace the jobs. The company which previously reported a workforce count of 38,000 employees last year is now down to 33,000 this year.
