Sprint Corporation will be reducing jobs as part of its cost-cutting efforts to reduce its expense in the next six months, according to a report from The Wall Street Journal.
The company is looking to cut its expense between $2 billion and $2.5 billion.
The Wall Street Journal adds that the announcement about the cost reduction came in an internal memo that Tarek Robbiati, the CFO of Sprint, to staff this week.
The company also announced that they will be freezing external hiring.
Robbiati said in the memo, which was reviewed by The Wall Street Journal, the cost reduction "inevitably will result in job reductions."
Sprint has about 31,000 employees as of the end of March.
The Wall Street Journal adds that Robbiati said the finance department should thoroughly review and approve all expenditures.
"The main thing to consider when requesting to spend money is to take an owner's mindset by treating every dollar as if it were your own," he said.
Fierce Wireless adds that it is still unclear how many jobs Sprint will be cutting this time around.
The company has cut around 5,000 employees during the first nine months of 2014 and added in November that it would cut another 2,000 jobs.
Fierce Wireless adds that Sprint's net operating revenue for the second quarter is down by 9 percent compared to a year ago.
The company has reported a second-quarter net operating revenue of $8 billion.
Fierce Wireless adds that the disappointing figure is due to lower wireless and wireline services revenues.
The company's equipment revenues were also lower.
Fierce Wireless adds that analysts at Wells Fargo said in a note to investors after the WSJ's report that Sprint's cut is a significant amount.
"To put it in perspective $2.5B represents 1/3 of the company's operating costs," analysts said. "While we view this as a positive step in the right direction, we believe the market will give it very little credit for such a move until we see tangible evidence of costs coming out of the model."
The Wall Street Journal adds that Sprint's aim of cutting $2.5 billion in costs is an ambitious target, considering that it had $7.5 billion in operating expenses during the three months ended on June 30.
The company has said that it previously cut $1.5 billion in expenses in the last 12 months.
