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November 18, 2015

Sprint Plans a Major Overhaul with a Regional Approach & Job Cuts

Sprint has been down on its luck lately, as Verizon and AT&T continue to dominate the mobile field and T-Mobile makes aggressive moves forward. Sprint isn't taking this lying down, however, and has rolled out a new plan to focus on local service. Unfortunately, that plan entails job loss in some of its current sites.

Sprint's new plan will establish four regional offices. CEO Marcelo Claure calls their new vision a “completely local decentralized model.” The regional hubs will be tasked with customer retention as well as improving quality of service, a measure that is hoped to help Sprint stem the tide of customer losses, now in its seventh year. The company has gained some ground in the past, thanks to moves like iPhone leases for $1 a month, but it's still not enough to help the company recover its third-place slot from T-Mobile.

Claure describes the action as essentially creating “19 Sprints,” each better able to fight on a local level. The company is looking to cut $2.5 billion out of its over $20 billion in annual costs, so job cuts are on the way. Claure acknowledges the necessity of the cuts, saying in a memo “For our colleagues who will be leaving, we will be sorry to see them go. These are actions we must take so that we can ensure the strength and long-term success of our company, and save thousands of other jobs.” The exact numbers of said cuts are undetermined as yet.

Image via Pixabay

It's great that Sprint is taking on a more local focus. That improves its ability to compete by better understanding local issues and concerns and addressing these accordingly. Customers in Overland Park, Kansas—Sprint's headquarters—will not have the same concerns as customers even in Topeka, let alone Los Angeles. This more regional approach will allow for better service, but why cut jobs in doing so? The company is establishing four major regional operations. It's installing a president for each region. Why would it lose employees at a time when it's starting to split its focus?

Worse, Sprint may be solving the wrong problem; with T-Mobile recently launching a plan that actually delivers what users want, Sprint might be at least a step behind here. A look at the landscape might do a better job than establishing a huge change in operations, and it will only be worse for Sprint if the accompanying job cuts leave it short-handed and less able to help customers.

Sprint is in a bad position, and it's clear Sprint is doing all it can think of to help turn it around. While these may not prove to be the right moves, at least no one can accuse Sprint of lying down on the job.

Edited by Kyle Piscioniere

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