Sprint slashes 4,000 jobs, shutters stores
updated 09:55 am EST, Fri January 18, 2008
Sprint Slashes 4000 Jobs
Sprint will cut about 4,000 jobs from its workforce and close 125 of its dedicated retail stores, the cellular carrier announced today. The move is expected to save the company between $700 million and $800 million a year and reflects a continued shrinking of the company's subscriber base, which gained about 500,000 subscribers in the most recent quarter but promptly lost 885,000 at the same time.
Most of the decline is attributed to network troubles and a perceived reputation for poor customer service that has cost the company valuable monthly subscription customers. The subprime mortgage crisis in the US has also forced some subscribers to switch to lower-cost prepaid phone service, Sprint says.
The provider is believed to have given up its subscribers to larger incumbent carriers such as AT&T and Verizon, both of which have used a combination of higher expectations for customer service as well as greater clout with devices and network build-outs to attract subscribers. Both are believed to be ahead of Sprint in developing their respective 3.5G Internet networks.
AT&T is currently the largest carrier in the US and is believed to have been helped significantly by the iPhone, which sold 4 million units in 2007 that were largely destined for long-term subscriptions with the American network. The company has not published recent statistics indicating how many of its new iPhone customers were conversions from other carriers versus existing subscribers opting for the new device.
the iPhone effect
01/18, 10:08am reply
This is undoubtedly the work of iPhone. Sprint may be banking on their WiMax, but it is very questionable whether they'll be able to cash in on it with current iPhone trends.
vasic
Fresh-Faced Recruit
Joined: May 2005
No loss
01/18, 10:09am reply
Around here, a lot of people got Sprint when it came to town and at the end of their contract ran for the hills because their service was SO horrid. And the billing issues are even worse.
No kidding they're loosing customer base.
bjojade
Fresh-Faced Recruit
Joined: Jun 2007
Denial
01/18, 10:20am reply
When I recently dropped my Sprint contract to switch to AT&T for my new iPhone - I remember the customer service rep. outright challenging my decision and arguing with me that I was making a big mistake, and would likely be coming back. She went on to blame the excruciating long wait-times for customer service on the overwhelming number of returning customers and people signing-up for new contracts.
I rebutted by saying the large caller volume was more likely a result of dissatisfied and even offended customers taking the same action I was.
I wish I had that rep's email address to forward this article to!!
cblackmo
Fresh-Faced Recruit
Joined: Nov 2006
Wish AT&T would buy
01/18, 10:26am reply
I'm in an area were there is no AT&T. Sprint is in the area so if AT&T bought them out I could get an iPhone. Yeah, I know, it's all about me :)
slider
Mac Elite
Joined: Oct 1999
ha, ha!
01/18, 10:27am reply
good riddance a*******.
climacs
Fresh-Faced Recruit
Joined: Sep 2001
Just left Sprint
01/18, 10:29am reply
After 15 months of billing problems and terrible customer service, I took advantage of the latest terms and conditions change to jump ship. Their network was good here, but god help you if something goes wrong on the customer service side.
Maneki Neko
Dedicated MacNNer
Joined: Feb 2001
incompetence
01/18, 10:38am reply
Sprint recently changed its billing system that includes changing customer ID, so if you have it set as auto-payment from you bank, you have to go in and change your ID (if you actually read the letter). Those who don't read their letter might be screwed (almost every bill says: we changed our bill to make it easier to understand, so it's easy to ignore).
dliup
Fresh-Faced Recruit
Joined: Jan 2006
waiting....
01/18, 10:59am reply
Waiting for my sprint contract to expire so I can make the switch to the iPhone.
iChick
Fresh-Faced Recruit
Joined: Sep 2001
Wait a Tic
01/18, 11:01am reply
Wasn't this the company that recently decided they could axe customers that called them too much for customer service? Maybe they should've improved customer service instead of dropping customers.
PBG4 User
Senior User
Joined: Feb 2001
PERCEIVED reputation
01/18, 11:14am reply
PERCEIVED reputation for poor customer service???? Thee's no perception problem here. I have Sprint & will likely keep them for a long time. They have given me a fantastic rate plan & I can't even come close on any of the other networks. The cost for that rate plan is putting up with Sprint's customer service. It is by far, the worst CS department I have ever worked with. You can guarantee that 50% of what they tell you will be wrong & that's the fun part. Once you hang up the phone, you get to guess, until your next bill comes out, which parts will be messed up.
Fortunately, the network is great everywhere I go & the plan is fantastic. I only have to call in to CS 1 or 2x per year, so I can live with it. But their reputation is well deserved.
mkral
Mac Enthusiast
Joined: Nov 2000