Sprint Corp. is planning to cut as much as $2.5 billion in its fiscal 2016 expenses, according to a report from Reuters.
The company said that the cut in expense will come from layoffs and a wide array of cost controls.
Dave Tovar, a spokesman from Sprint, told Reuters in an interview that they will be looking at all aspects to reach their target.
"We are leaving no stone unturned and looking at all areas," he said.
Reuters adds that Tovar has declined to predict how many employees would be affected by the layoffs and said that it was too early in the budgeting process.
He adds that Sprint will provide more details about the job cuts and its plans to bolster quality, speed and capacity of its wireless network on Tuesday, November 3, 2015, when it reports its fiscal second-quarter results.
RTT News adds that reports said that the Sprint employees who are laid off after January 30 will only receive one week of pay for every year worked at the company.
This package is down from the previous package of two weeks' pay that laid off employees will receive.
RTT News adds that Sprint currently has 31,000 employees as of March 31, 2015.
Fortune adds that the company's estimated cost savings would be equivalent to about 10 percent of its current annual operating costs.
The company currently has $26 billion in annual operating costs.
Tovar told Fortune that the company's capital expenditure to sales ratio is currently higher than for other wireless carriers.
"We are trying to get more in line with the industry average," he said.
Fortune adds that Sprint's capital expenditure to sales ratio is more than 20 percent.
Reuters adds that the company's cash situation is being affected by its monthly leasing plans.
Sprint is required to pay vendors up front for the devices that they partner with the monthly leasing plans.
