Sprint Nextel has written off most of the remaining value of its 2005 purchase of Nextel Communications as the company reported a fourth quarter loss of US$29.5 billion amid a continuing decline in customers. The company warned last month it would likely have to write off most of the remaining US$30.7 billion in goodwill value from the acquisition of Nextel and a number of affiliates since experiencing difficulty in merging the operations into a cohesive whole. Sprint Nextel today said overall wireless revenues declined about 6% to US$8.5 billion. The company reported a net loss of 108,000 subscribers for the quarter.
CEO Dan Hesse, hired in December to turn the nation’s third largest mobile operator around, said the quarter was more difficult than he expected and it could be some time before proposed operational changes have any effect. Hesse already announced last month that the company would lay off about 4,000 employees, or 6.7% of its workforce, and close 125 retail locations. Earlier this month he moved the company’s corporate headquarters back to Kansas with the aim of improving efficiency and management oversight. The company’s shares have fallen more than 50% in the past year.