Sprint Corporation Cuts 2,000 Jobs; Stock Decline After-Hours

Sprint Corporation (NYSE:S), the third largest wireless carrier in the United States announced its decision to cut 2,000 jobs to reduce costs. The workforce reduction was part of its financial statement today.

The shares of Sprint Corporation (NYSE:S) climbed to $6.20 per share today. However, its stock price declined more than 4% to $5.94 per share during the extended hours trading around 4:34 P.M. in New York after releasing its second-quarter fiscal 2014 earnings results.

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Financial performance

Sprint Corporation (NASDAQ:S) reported $192 million in operating losses, $8.5 billion in revenues for the quarter and almost $1.4 billion in adjusted EBITDA. The company achieved its financial results during a transitional quarter wherein Marcelo Claure was appointed as new president and CEO in middle of August.

In a statement, Claure said, “We have started a transformational journey. While the company continues to face headwinds, we have begun the first phase of our plan and are encouraged with the early results. Every day we are focused on improving our standing with consumers, improving our network and controlling our costs.”

During the quarter, Sprint Corporation (NYSE:S) added 590,000 customers to its platform. The wireless carrier recorded additional 272,000 prepaid customers and 827,000 wholesale clients, but lost 272 postpaid customers.

Sprint Corporation’s brand repositioning

Sprint Corporation (NYSE:S) implemented several actions to strengthen its competitiveness in the industry. During the quarter, the company repositioned its brand as the best value in wireless with compelling price plans and promotions.

Sprint Corporation (NYSE:S) offered the Sprint Unlimited Plan for individuals and couples for $50 to $60 per line.  The company also offered the Spring Family Share Pack for families that doubles the data of its competitors. The Sprint Business Share Plans offers lower rated and more data compared with its rivals. It is also offering the first industry-first iPhone for Life leasing plan for only $20/month, the lowest total cost of iPhone ownership for customers.

Sprint Corporation (NYSE:S) is also continuing its focus on delivering a consistent, reliable network coverage with competitive voice performance and data capacity. The company deployed its multi-band 4G LTE service and aims to complete the build out of the 800 MHz spectrum and expanding the 2.5 GHz spectrum coverage.

Workforce reduction

Sprint Corporation (NYSE:S) said the additional workforce reduction is part of its cost optimization program, and estimated to reduce its total labor costs by $400 million on an annual basis.