Sprint to Cut 2016’s Fiscal Expenses By $2.5 Billion

Sprint to Cut 2016’s Fiscal Expenses By $2.5 Billion

Sprint Corp, the American telecommunications holding company that provides wireless services, said in a statement on Sunday that it is planning to cut down its fiscal expenses of 2016 through layoffs and cost controls.

CFO of the fourth-largest telecom services provider in the United States announced in the beginning of this month that Sprint will cut its costs by at least 10% in the next year.

The company has also announced that it will not be participating in the airwaves auction in 2016 as it is aiming to improve its network rather than acquiring additional spectrum. Sprint so far is planning to use its resources majorly to improve its network and service level for customers.

The balance sheet of the company which presently employs nearly 31,000 people has a major burden from the promotional schemes offered by the company. It has been found that Sprint and T-Mobile has been offering tempting plans to attract more customers and improve their market share compared to AT&T and Verizon Wireless.

Spokesman of the company Dave Tovar in a recent interview confirming the layoffs said that the company will announce layoffs when it declares quarterly results on Tuesday. He also said he has no estimate about how many people could face layoff. Sprint will leave no stone unturned to improve its results by cost cutting, said Tovar.

Sprint in its first quarter ended June 30, posted a $20 million loss as revenue fell 8.7% to $8.03 billion, missing analysts’ estimates of $8.43 billion.

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