Sprint Nextel has confirmed recent reports it is to cut thousands of jobs, announcing late Friday that it will eliminate about 4,000 positions and close 125 (8%) of its company-owned retail outlets. In a release, the company said it expects the actions to reduce labour costs by an annualised rate of US$700-800 million by the end of 2008. The job cuts are planned for completion by the end of June. The cuts will include management and non-management positions throughout the company. The company shakeup saw Sprint Nextel shares fall almost 25% to $8.70 in trading Friday on the New York Stock Exchange.

Announced as part of its Q4 2007 results, the operator also unveiled a net gain of 500,000 subscribers through wholesale channels, growth of 256,000 Boost Unlimited users and net additions of 20,000 subscribers within affiliate channels. However, those gains were offset by net losses of 683,000 postpaid subscribers and 202,000 prepaid users. Sprint Nextel has been losing high-value subscribers for more than a year, one of the issues that led to the departure of Chairman and Chief Executive Gary Forsee in October. In December the operator announced the arrival of Dan Hesse as new President and CEO.