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Sprint Shutters Stores and Lays Off Employees in Effort to Stem Losses

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In a bid to restore profitability, Sprint is laying off workers and closing repair centers and stores. That includes 330 technical consultants, 15 service and repair centers, and 55 “worst-performing” retail locations, which are in addition to the 450 customers service employees Sprint let go earlier this week.

Sprint is couching the slimming of staff as a way to “improve efficiency,” but the move seems mainly in response to the company’s $1 billion loss in the fourth quarter of last year. Under the ownership of Japanese carrier SoftBank, Sprint has seen revenues decline as competitors have encroached on its prepaid markets and rapidly outpaced its deployment of 4G LTE.  

The lack of device repair centers may inconvenience some; Sprint said it will refer customers with broken phones to staffed stores within a 45-minute drive. However, the company said it’s aiming to keep the consumer impact to the cuts minimal.

Via: CNET

 

  • Brian S.

    “stem losses” = nice way of saying “we like our employees but we like having more money better, please go make a living elsewhere”

  • Richard Yarrell

    Pretty sad conclusion definitely.

  • MistaButters

    45 minute drive?! Eff that noise.

  • ehenry818

    The problem with Sprint, is they roll out their Lte way to slow. I understand that their are leaps and bound to go through to upgrade the towers. But the fact of the matter is that even after they upgrade, they are still slow compared to other carriers. Where I work, we run speed test with TMobile and Sprint. With Sprint 4G Lte the max speed we have gotten is 10mb down. Usually 5-7mb down. With T-Mobile we get between 25-30mb down, peaked at 38mb. Even where I live the T-Mobile 4G Lte performs the same. So Sprint is not up to Par even on speed standards with there Lte compared to T-Mobile.
    The fact that Softbank purchased them and their network still stinks and they are losing money left and right, I really do not think anything will help Sprint. Maybe Blackberry and Sprint should merge and they can dwindle away together

    • creed

      My Verizon speeds never exceed 11-12 mb/sec down. When 4G was first introduced where I live, you could pull 35-40 down. Everyone boasts T-Mo’s speeds, but in convinced its because no one is on their network. When they have as many customers as the other major carriers, I think we’ll see everyone sing a different tune about T-Mo.

      • PoisonApple31

        This^. Well said sir!

      • mplacido9

        I would agree with your comment if we were talking about comparing T-Mobile and Verizon. However, there is no way Sprint has that many more customers on LTE than T-Mobile that their network would slow down that much. I doubt Sprint even has more customers on LTE than T-Mobile period.

        • creed

          Probably very true. I guess my point is that t-mo has good speed now because their network isn’t flooded with traffic. If/when they have an equivalent ratio of customer to network then we will see if they still have their 40 mb download speeds.

          • jbworldwide1

            Yeah well, until then I’m partying with 37 mbs of LTE, no contract and I’m JUMPing every six months dogg!

    • DirkDigg1er

      This is a game of chess, not checkers. Sprint coverage will eventually out shine T-mobile’s speed. Then you will be crying about T-mobile’s poor coverage. Hate it or love it both companies are here until they merge.

  • trixnkix637

    Sprint always was the redheaded step child of the 4 major carriers. I don’t know too many who would miss them if they went away, and I especially don’t know anyone who is a current customer and happy with them.

    • flosserelli

      Competition helps drive prices down, and in every competition there are winners and losers. Someone has to bring up the rear.

    • MistaButters

      I had Sprint in 2007 & 2008 and honestly I loved it. My treo was both analog & digital so I would get coverage in the most remote places ever because of the existing analog Nextel coverage. Also, unlimited data (however slow and limiting) was only $10.

      • Intellectua1

        Treo 650 and above were my favorite phones.. Next to the old school Blackberrys I’ve also owned.

    • creed

      Agreed. As if there customer service wasn’t awful enough, then they let go 450 customer service reps. Genius!

    • DirkDigg1er

      Sprint and T-mobile generally trade spots from hated to loved every 3 years. You’ll love Sprint again next year.

  • CommancheNinja

    Wait they have unlimited plans!

    • Cael

      Who has the time to wait for their unlimited plans?

    • Droid Ronin

      There isn’t much value in unlimited if you are getting a snail’s pace in download speeds.

      • PoisonApple31

        Isn’t that how the other unlimited plans out there work? Get throttled to hell after a certain amount of data usage for the month? At least Sprint isn’t throttling? They are just providing consistent slow speeds? lol I can’t seriously type that last question.

        • Droid Ronin

          I get 5 GB of LTE with T-Mobile and I use roughly 3-4 GB a month so I’m a happy camper when it comes to speeds.

        • DirkDigg1er

          They should throttle speeds. It may increase speeds short term until spark is expanded.

      • CommancheNinja

        i was being sarcastic. i have a Sprint SERO plan that I refuse to give up because unlimited plans are going extinct…but it’s getting harder to justify it with their garbage wimax and pitiful LTE.

        I figure Softbank is the last chance for it to make it right.

  • Guy Pierce
  • chris125

    Sprint is the bb of the wireless carriers.

    • michael arazan

      Soon to be Circuit City if they don’t manage their money better. I’m guessing they sacrificed all their fluidity in the Clearwire purchase and haven’t done anything with it. They need to offer some insane deal for 6 months and get some customers in the door.

  • Thomas

    Just sell out to T-Mobile & lets call it a day.

    • PoisonApple31

      Sell out to T-Mobile? Doesn’t Sprint’s parent company want to buy T-Mobile?

      • Thomas

        That’s been talked about for awhile, but I don’t see how that can happen at the rate they are losing $$$$

        • Erik

          because Sprint’s parent is the Verizon of Japan… the most profitable and best carrier by far

          • Thomas

            Ahhhh…I missed understood his question. Thanks for the correction.

  • Ralph Bretz

    To save money Sprint needs to stop sponsoring NASCAR. NASCAR’s hayday is long gone. TV ratings are down and races are not selling out. I don’t think the NASCAR fan base was the right demographic any how. They need to market their product to the right people and in the right places.

    • PoisonApple31

      If they hadn’t tried to Nextel the success it is today…

    • Erik

      Nascar is the target demo for sprint.. blue collar people who save money where they can… Verizon is expensive compared to Sprint and T-Mobile doesn’t compare network wise in the south… race attendance was down due to economy.. it’s starting to rise again…

      • PoisonApple31

        There’s white collar people at my place of employment that are asking people to join their Framily plan so they can get it for as little as $25/month on the internal classified ads! haha

    • master94

      Especially when their network sucks. Spend that money on upgrades and people will come, to bad they wont

  • T4rd

    Didn’t get much of an ROI on that Clearwire/WiMax investment, eh Sprint?

    It they hadn’t jumped the gun and dumped tons of money into a bogus 4G network (WiMax) just to one-up other carriers for less than a year, and implemented LTE in the first place (even if they had to wait a while to do it), they probably would be doing better.

    • MistaButters

      Sprint was stuck between a rock and a hard place with Clearwire. They should have never entered the partnership in the first place. Once they were in, their hands were tied and they had to make a bid to buy Clearwire outright just to keep it afloat. It was a sinking ship, but Sprint had no choice. Then DISH wanted the spectrum and started a bidding war, so Sprint got worked further. They went all in with a bad hand.

    • DirkDigg1er

      By your logic, Sprint would have lost the spectrum due to not making the build out deadline. Smaller carriers couldn’t afford lte at the time. Only large company orders drive prices down, and thus the reason why Sprint had made the best decision at that given time.

      • T4rd

        And it was the wrong decision. It would have been better off lost.

  • Adrynalyne

    It is a shame to see competition flounder, but I think we all saw this coming.

    They made way too big of promises and couldn’t pull through.

    • KingofPing

      They really need to step up. Softbank needs to focus on growing Sprint or sell them off to someone who will. We need this competition and the way things are going we’ll be down to 3 carrier soon even without a rumored merger…

      • Cael

        Softbank thinks the only way to grow Sprint is to buy T-Mobile instead of improving service. AT&T and Verizon would never buy Sprint. T-Mobile shouldn’t either. Softbank should just sell off the spectrum, etc and close up shop. Only way it’ll make its money back.

        • michael arazan

          They couldn’t afford to buy T-Mo, they already bought clearwire last summer and that’s why they are struggling cash wise., I doubt anyone could buy T-mo and get approval for it, unless it’s Dish

          Anyone hear if Dish and Google are still partners, last official statement was in January 2013 and then no information whatsoever.

          • DirkDigg1er

            Dish with a market value of $25b can’t afford Tmobile. I can’t picture Dish improving any wireless carriers infrastructure and spectrum needs.

        • DirkDigg1er

          If att or Verizon could get approved they wou
          I have bought Sprint.

      • Adrynalyne

        I thought for sure that SoftBank was what they would need to get the ball rolling. Now I think it boils down more to poor management.