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Sprint has cut nearly 25,000 U.S. jobs since 2006

November 8, 2011

Sprint’s opposition to the AT&T/T-Mobile merger is based, in part, on a discredited Sprint-funded report that, using faulty reasoning, claims the merger would lead to “significant job loss.”  [Sprint FCC Filing, 9/30/11]

If Sprint wants to protect U.S. jobs, it can start by putting its own house in order. Over the past four years, Sprint cut nearly 25,000 American jobs and closed 30 U.S.-based call centers. [Sprint Nextel Corporation, 10-K formsWall Street Journal, 7/18/11]

According to Sprint’s filings with the Securities and Exchange Commission, Sprint had “approximately 40,000” employees on Dec. 31, 2010 (the most recent data available), down from 64,600 employees four years earlier on Dec. 31, 2006. This represents a reduction of nearly 25,000 jobs or 38 percent of the Sprint workforce. The 25,000 job cuts occurred after Sprint spun-off its local telephone lines to create Embarq in 2005. [Sprint Nextel Corporation, 10-K forms]

Sprint’s employment reductions are a result of two factors: significant outsourcing and offshoring of work, and a declining business resulting from bad corporate decisions. [Gigaom.com, 7/9/09; Kansas City Star, 5/20/10]

A look at Sprint’s outsourcing

Sprint is the only wireless company to contract out network management. The company eliminated 6,000 in-house jobs when it contracted the work to Ericsson, which sends many of those jobs to India. Dan Hesse, Sprint’s CEO, told the 2010 annual shareholders meeting that the company’s outsourcing deal, combined with significant layoffs, reduced the company’s costs by a third. [Gigaom.com, 7/9/09; Kansas City Star, 5/20/10]

Sprint sends American jobs to India, the Philippines, and Mexico

Sprint contracts out as much as 70 percent of its customer service work, much of it to India, the Philippines, and Mexico.  [LA Times, 3/5/09]

Even Sprint leadership acknowledges that company’s outsourcing has gone too far. “We were a bit too heavy on outsourcing coming in to 2008,” said Bob Johnson, Sprint’s Chief Service Officer.” [LA Times, 3/5/09]

Despite its extensive record of sending work overseas, Sprint gave a non-binding commitment to bring back only 600 jobs to this country over the next several years, according to the Jobs4America initiative.

Sprint: Its Time to Get Your House in Order

The key to job creation is investment-driven growth coupled with a human resource strategy that sees U.S. workers as the source of value-creation for the company. Sprint has failed on both counts.  Sprint: it’s time to focus on these fundamentals so the company can reverse its abysmal employment record and contribute to a jobs recovery that this nation so desperately needs.  [EyeOnSprint: Sprint’s Pushmi-Pullyu Strategic Plans; According to independent analysts, Sprint’s Network Vision is blurred]

Posted by EyeOnSprint in: Jobs