Sprint warns on restructure charges

Sprint warns on $165M restructure charges

24 JAN 2014

Sprint said it expects to record charges of $165 million for the fourth quarter of 2013 relating to restructure charges, while warning that “additional material charges are expected in future periods associated with this plan”.

In a regulatory filing, the company said that on 16 January 2014, it began implementing a workforce reduction plan, to “reduce costs and better meet the changing dynamics of the marketplace”. It is expected to be largely completed by 30 June 2014, and both management and non-management positions will be affected.

The operator has not said how many staff are affected by the changes, or in which business areas or roles. Reuters reported that a Wells Fargo analyst had said the company’s cost structure “remained somewhat inflated” following its 2005 acquisition of Nextel.

Sprint will release its results for the fourth quarter and full year 2013 on 11 February 2014.

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