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"We
are leaving no stone unturned and looking at all areas," company
spokesman Dave Tovar said in an interview. He declined to
predict how many employees would be laid off, saying it was too
early in the budgeting process.
The estimated cost savings for Sprint, which has 31,000
employees, would be equivalent to about 10 percent of its
current annual operating costs of $26 billion.
The ratio of the company's capital expenditures to its sales is
more than 20 percent, which Tovar said is higher than for other
wireless carriers. "We are trying to get more in line with the
industry average," he said.
He said Sprint on Tuesday will provide more details about the
job cuts and the company's plans to bolster the quality, speed
and capacity of its wireless network, when it reports fiscal
second-quarter results.
Savings are also expected to come from cutting severance for
laid off employees and temporarily eliminating raises.
In its first quarter ended June 30, the company posted a $20
million loss as revenue fell 8.7 percent to $8.03 billion,
missing analysts' estimates of $8.43 billion. But majority owner
Softbank Corp eased investor concerns by saying it has no plans
to sell its stake in Sprint.
Sprint has been burning through cash because of monthly leasing
plans requiring wireless carriers to pay vendors for devices up
front.
(Reporting by Ransdell Pierson; Editing by Richard Chang;
Editing by Eric Walsh)
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