RSSSprint Nextel to cut workforce, close underperforming stores
By Ed Oswald | Published January 18, 2008, 11:44 AM
In response to an increasingly difficult retail environment, Sprint Nextel says about 4,000 employees will be laid off and about one out of every eight retail stores will close.
Expecting a slowdown in both revenue and subscriber growth in 2008 amid an economic downturn, the move could be seen as a preemptive strike in order to keep the carrier profitable.
The cuts mean about 125 stores will close. Although it will take a first quarter charge for severance charges, the company will save about $700 million annually in labor costs by cutting its workforce.
Sprint has been struggling to keep customers, as it has been besieged by a variety of problems. Many subscribers view its customer service as poor, and network issues have only magnified those problems.
For the quarter, the company gained about 776,000 customers through its wholesale, Boost Mobile, and affiliate channels. However, those gains were erased by the 885,000 pre and post-pay customers who left the carrier.
Sprint's total customer base was 53.8 million at the end of 2007, up just 700,000 from the year previous.
I am a longtime Nextel customer and love their walkie-talkie features, but ever since Sprint merged with them, the service gets lousy. They are giving me REBATE to update my phone, but then the price of the phone is still rocket-high despite the model now being old. WHAT A MARKETING STRATEGY! NO WONDER WHY PEOPLE ARE GETTING AWAY FROM THEM.
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|Reading these comments reminds me of why I quit my job as a customer service rep for Sprint/Nextel. While the pay was good, it was just a complete joke of how these guys were training people who were in my position.
Oh, and the funny thing is that the "Now Hiring" sign has been posted on the building for nearly a year straight! What does that tell you?
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|So far this is only impacting these markets controlled by contract sytems, where as the market controlling pre-paid is growing like rapid fire. It's a proven track record that Virgin Mobile USA did when it partnered with Sprint as it's backbone. As when Boost Mobile partnered with Nextel on the iDEN. If this trend continues, we will be seeing more prepaid vs. contract. Still unclear why AMP and Disney Mobile pulled out though, feedback?
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|Sprint asked their customers to leave and they did. I would think they would just hang a big "Mission Accomplished" banner over every store and move on.
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|Sprint and ATT buy companies to add customers.
Where verizon built out it's network to keep custumers.. I do not like any telecom. But verizon is BY FAR the best wireless carrier out. It's about the network. I get from 60K-200K driving at 70mph from LA -> Las Vegas.. no drops.. that is something.. oh ya and the voice service is good also..
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|Sprint has been relatively good to me and the customer service line has always been helpful.
However, I also have gripes about the way they treat existing customers, even after their rebates and marketing to acknowledge current customers. The fact that I have to drive more to have a technician evaluate my phone reminds me of the price of a gallon of gasoline. Their cost savings become my cost expenditures.
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|I can't wait till my Nextel contract ends in July so I can drop them, ever sence sprint took over its been nothing but crap.
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|In my area Sprint decided to remove tech support from their stores and centrally locate their tech support at one location. This effectively made the retail stores at every corner useless to me. I'm surprised it took them this long to realize what a waste it was to have them. Long story short, I'm glad I dropped Sprint a year ago.
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|Sprint has the absolute worst customer service I have ever experienced. The phone service itself is great for me and I love my 755p, but come April when my contract runs out I am leaving them.
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