Sprint Cuts Not So Merry

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The long-awaited trimming of the Sprint employee tree began last week and the official word came Monday when the Kansas City carrier filed the news with the SEC in an 8-K report. Long ago Spring said it would cut $150 million from its budget and in his report, Sprint Corporate Secretary Timothy P. O’Grady said “on December 16, 2015, Sprint Corporation began implementation of a workforce reduction plan to reduce costs. 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. This planned reduction is expected to be largely completed by January 31, 2016 and will include certain management and non-management positions.

While no hard figures are available on how many employees will be eliminated, the numbers are reportedly “in the thousands.”

’Grady said the carrier expects to recognize a charge of approximately $150 million in the third fiscal quarter of 2015 for severance and related costs, however, “additional material charges associated with future labor reductions may occur in future periods. This estimated charge for the severance and related costs was determined based on an existing employee benefit severance plan and based on the information available as of the date of this Form 8-K. The majority of the above estimated charge is expected to result in cash expenditures by December 31, 2016.

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