Sprint To Consolidate Network Operations,Cut 1,000 Employees

Sprint CEO and Chairman William Esrey has stressed several times in the past that Sprint's strategy moving forward would be to create a seamless experience for the customer via a more consolidated operation.

"We need to take this division in the customer's mind between wireline and wireless and desktop and laptop and home and office and take it away and provide an interface that is consistent no matter what device you happen to be using," said Esrey in a past interview with CRN.

Moving forward, the operations for Global Markets and PCS including network, IT, customer credit and billing and collection departments will be combined into a single organization.

The new organization will provide network infrastructure, integrated IT platforms and billing and accounts receivable capabilities to "allow seamless local, long distance, Internet and wireless network capabilities for Sprint customers," said the company in a statement.

"Eliminating jobs is a difficult decision and one made with great care," said Esrey, also in a statement. "The consolidations we are announcing today are a necessary step if we are to capitalize on our strength, which is the ability to offer a complete portfolio of wireline and wireless voice, data and Internet services under a single brand at a competitive price."

Another 1,100 layoffs are expected across Sprint to "maintain a competitive cost structure," said the company.

Costs related to employee severance and other exit costs are expected to result in a pretax charge of approximately $85 million in the 2002 fourth quarter and annualized cash cost savings of approximately $145 million.