Sprint cuts 2,000 jobs, stock falls 5 percent

Andrew Harrer | Bloomberg | Getty Images

Pedestrians walk past a Sprint store in Washington, D.C.

The company also announced it would be cutting 2,000 jobs. Sprint said this move will be part of its larger cost reduction efforts, and that the firm's total labor cost is expected to decline $400 million on an annualized basis. In total, Sprint said it is targeting $1.5 billion in annualized cost reductions compared to 2014 levels.

Sprint's postpaid churn came in at 2.18 percent, compared to analysts' average expectation of 2.12 percent. Post-paid net losses for the Sprint platform totaled 272,000—analysts had expected a loss of 187,000.

"We have started a transformational journey," CEO Marcelo Claure said in a press release. "While the company continues to face headwinds, we have begun the first phase of our plan and are encouraged with the early results. Every day we are focused on improving our standing with consumers, improving our network and controlling our costs."

Sprint abandoned its attempts to merge with rival T-Mobile in August amid indications that the regulatory barriers would be significant. Now the two companies are locked in a battle for the title of third-largest U.S. carrier—AT&T and Verizon are both much bigger.

The company's latest promotion—it provides annual upgrades in its "iPhone for Life" plan—has garnered some attention, but it is as yet unclear if consumers will regard it as a gimmick.

 

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