Sprint has announced that 6.7% of its staff will be decreased, and 8% of stores will be closed due to falling stocks. This is one of the first steps taken by new CEO Dan Hesse who was appointed last month, reports MarketWatch.
In the fourth quarter, Sprint lost 109,000 subscribers overall and 683,000 postpaid customers. Postpaid customers are usually considered the most valuable in the industry.
Shares dipped over 25% to $8.52 in current trades, which is the lowest it’s been since the fall of 2002. Sprint said it would cut 4,000 jobs from its 60,000 employee workforce and close 125 of its 1,400 company-owned retail stores.
These cuts are estimated to save about $800 million on an annual basis according to the company.