The third-largest cell phone carrier in the U.S. has announced that it will be laying off workers.
According to the Associated Press, Sprint will lay off an undetermined number of workers as part of a cost-cutting program announced Thursday.
The Kansas City Star has reported that in a filing with the Securities and Exchange Commission, the company said severance payments and other related costs would total $165 million.
The Star also notes that Jennifer Fritzsche, an analyst with Wells Fargo Securities, has said that the cutbacks may reflect an inflated cost structure left over from its 2005 merger with Nextel.
“While the human element of such moves is indeed difficult, we believe this reduction was likely overdue and needed,” she said. “We continue to believe Sprint/SoftBank is making many under-the-radar moves to improve its overall cost structure.”
The Overland Park-headquartered company has not yet determined what jobs will be cut, but many of the low-performing retail stores are expected to close and Sprint’s customer care centers could also see significant cutbacks.
The wireless carrier joins other companies that have recently announced closing stores and cutting jobs due to the changing marketplace.