Sprint Laying Off 450 at Kansas City Headquarters

Updated on

Telecom provider Sprint Corporation (NYSE:S) is planning on laying off 452 employees at its Kansas City headquarters in the near future, according to various regulatory filings by the company.

In the first half of this year, Sprint cut another 550 jobs at call centers in Overland Park, Sacramento and Elmsford, N.Y., as part of a broad reduction in force that included 450 jobs at a Fort Worth, Texas-based call center, 150 positions at a Temple, Texas-based call center and about 400 positions at a call center in Orlando. Sprint noted at the time that the cuts were related to increased use of self-service care by customers and the ongoing transition to simpler, easier-to-understand rate plans.

Sprint layoff details

The Kansas City Star first reported that Sprint Corporation (NYSE:S) was set to layoff 450 people this month, which would bring total cuts at the firm’s headquarters to over 900 jobs in 2014 alone. The report was based on a company  filing with the Kansas Department of Commerce, and also noted the layoffs were permanent and that more job cuts were possible.

In an SEC filing in late September, the firm announced plans to cut an undisclosed number of jobs in the next month. Sprint noted the moves and would “reduce costs,” helping the company to “become more competitive in the marketplace.”

The filing noted: “The plan is expected to include steps to, among other things, improve operational efficiencies and reduce costs, as a result of which the company expects to incur material charges under generally accepted accounting principles.”

The material charges include recognizing a $160 million charge for the second fiscal quarter (ended Sept. 30), but the filing also noted, “however, additional material charges associated with future labor reductions may occur in future periods.”

Statement from Sprint

In a statement to The Kansas City Star, Sprint said previously announced plans for cuts in its information technology, portfolio management, network and technology groups would be “largely completed” by the end of this month. The firm also noted noted that Sprint currently employs approximately 33,000 people, down from around 36,000 employees at the end of March.

“We are seeing fewer calls coming into customer care,” Melinda Tiemeyer, spokeswoman for Sprint said in a recent interview. “That’s the result, for example, that many customers are on their second or third smartphone so they are well past the learning curve of using their phones. … Also, our technology is improving, our customers can use more self-service options to make changes to their account. That’s something we’ve tried to do more as an organization to help customers do more online themselves,” she said.

Leave a Comment