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Sprint says aims to slash costs up to US$2.5b, including layoffs
[NEW YORK] Wireless carrier Sprint Corp said on Sunday it aims to slash fiscal 2016 expenses by as much as US$2.5 billion, through layoffs and a wide array of cost controls, as an essential part of its ongoing turnaround efforts. "We are leaving no stone unturned and looking at all areas," company spokesman Dave Tovar said in an interview. He declined to predict how many employees would be laid off, saying it was too early in the budgeting process.
Mr Tovar said Sprint on Tuesday will provide more details about the job cuts and the company's plans to bolster the quality, speed and capacity of its wireless network, when it reports fiscal second-quarter results.
In its first quarter ended June 30, the company posted a US$20 million loss as revenue fell 8.7 per cent to US$8.03 billion, missing analysts' estimates of US$8.43 billion. But majority owner Softbank Corp eased investor concerns by saying it has no plans to sell its stake in Sprint.
Sprint has been burning through cash because of monthly leasing plans requiring wireless carriers to pay vendors for devices up front.