Sprint Corporation (S) shuts down 55 retail stores
Sprint Corporation (NYSE:S) has made a few major changes as part of an effort to reduce costs. The Kansas based telecommunications giant has laid off 330 technical consultants and shutdown 150 service and repair centers across the United States.
Sprint is also shutting down 55 of its worst-performing retail stores. These changes are part of a larger plan for layoffs and cuts that was announced in January. Sprint was recently acquired by Japanese carrier SoftBank and is working on returning to profitability.
Sprint is narrowing its loss from a year ago and reported a $1.62 billion loss in Q4 due to declines in revenues. Sprint warned that it would be cutting jobs in customer care centers and retail stores in January.
Earlier this week, it was announced that Sprint cut 1,550 customer service jobs. Sprint previously had a total of 2,000 to 2,500 technical consultants across the country, according to CNET.
These cuts should have a minimal disturbance to the customer. Some customers may be referred to a sister store that is within a 45-minute drive.
“We wanted to drive traffic to service and repair centers that were strong, and close ones that didn’t operate as well,” said a Sprint spokesperson.
The challenge for Sprint is that it has to cut operational costs while still spending top dollar on upgrading its network with 4G LTE in order to replace 3G for better performance. Sprint launched a new phone plan during the upgrade called “Framily.” This lets users select up to 10 friends, family members, or employees to have unlimited talk, text, and 1GB with. The more people that you add, the lower your rate becomes.