Sprint Corp is cutting 7% of their staff and closing several call centers to cut back on costs by $2.5 billion, and AT&T could be next. The carrier, fourth in the country, is already struggling through the beginning of the year.
Inside Source Reports Sprint Cutting Employees Through E-Mail
The corporation released a statement saying that the company is looking to cut business costs significantly. The goal is to keep the company sustainable in the long-term. They’re looking up to $2.5 billion in costs, and they did clarify that this would impact jobs.
CEO Marcelo Claure declared that the company needed to save cash and focus on gaining subscribers. The company’s stock and bonds have fallen to new lows, and investors have serious doubts about Sprint’s ability to pay back their debt.
Sprint Stocks Are Going Down, Are T-Mobile and AT&T Follow?
The corporation launched third-quarter results. Their fifth quarter earnings are expected to report more subscribers after announcing the extension of their half-off offer. Sprint has half the revenue it had this time last year, a little over $2 billion in cash from short-term investments. As such, it has decided to cut costs.
Sprint is looking over infrastructure, roaming fees to other carriers and the placement of their wireless towers. The move is drastic but necessary, as Sprint’s stock dropped 12% to $2.52. The company’s $4.25 billion in bonds rose 0.6%, but they are in danger of losing more money than they can handle.
The Fate of AT&T, T-Mobile, and Verizon
T-Mobile and Verizon have gotten many perks out of 2015, but AT&T is ambitious to keep up. T-Mobile has been breaking ground with their Un-Carrier series of offers. Most recently, AT&T is releasing a streaming service to out-Netflix Netflix. After acquiring DirecTV, we can expect a streaming service or something similar. The company will probably use the access they have to exclusive channels like HBO, Showtime, and Viacom. This gives it a lot of potential, and also puts it on par with T-Mobile’s UnCarrier series, which offers to stream video at no additional data costs.
It’s safe to say that as the second largest carrier in the US, AT&T has a very good chance of bouncing back. It could even give Verizon a run for its money.
