Sprint Cutting 2,000 More Jobs, Reducing Staff 5 Percent

NEW YORK (AP) -

Wireless carrier Sprint says it is eliminating 2,000 jobs, or about 5 percent of its staff, as part of an effort to cut $1.5 billion in annual spending.

The company said the cuts will be made over the coming weeks and months, and it is still determining how many jobs will be cut from various divisions. Sprint announced a separate round of job cuts in early October, and did not say how many jobs were eliminated at that time. Sprint said Monday that job cuts would reduce its labor costs by a combined $400 million per year.

Overland Park, Kansas-based Sprint Corp. is the third-largest cellphone carrier in the U.S., but it has lost billions of dollars in recent years as subscribers have canceled contracts, and it is trying to better compete with AT&T and Verizon.

Japan’s Softbank bought a majority stake in Sprint in 2013, and the company has eliminated thousands of jobs since then. It had 38,000 employees at the end of last year.

Sprint is also making changes at the top; in August, it replaced CEO Dan Hesse with Marcelo Claure, the CEO of cellphone distributor and Softbank unit Brightstar.

That came after Sprint ended its effort to buy competitor T-Mobile US.

The company’s losses haven’t ended. Sprint said Monday that it took a loss of $765 million, or 19 cents per share, in its fiscal second quarter, on $8.49 billion in revenue. Zacks Investment Research says analysts had expected a loss of 5 cents per share and $8.65 billion in revenue.

Sprint shares closed Monday’s regular trading session at $6.20, down 42 percent this year. In after-hours trading, the shares slid 7.9 percent to $5.71.