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Report: Claure Focusing on Cost Efficiency at Sprint

Tue, 08/12/2014 - 10:30am
Andrew Berg

The following story has been updated to include comment from a Sprint spokeswoman. 

Sprint's new CEO Marcelo Claure will initially look to reduce costs at the nation's third largest carrier. 

Citing an internal memo to employees, Bloomberg reported that Claure vowed big changes to come, saying success for the company will come through a focus on being cost efficient and aggressive in the marketplace. 

Bloomberg notes that part of the plan for Sprint going forward could include job cuts, along with reducing costs spent on network infrastructure and customer care.

When reached for comment on whether the way forward may mean job cuts, a Sprint spokeswomand said that "in the course of business, Sprint both adds and reduces it workforce based on business needs and market conditions."

As was reported earlier this month when Claure's appointment was announced, Sprint is backing off a proposed acquistion of T-Mobile. In the memo, Claure said that consolidation makes sense in the long-term but noted that Sprint will have to focus on growing and repositioning Sprint. 

Sprint is coming off a better-than-expected fiscal first quarter. Sprint opened its new fiscal year with a $23 million net income and $519 million operating income, the highest in seven years.

The black numbers came on fiscal first-quarter earnings per share of $0.01 and revenue of $8.78 billion, both of which exceeded analyst estimates.

Still, Sprint reported a net loss of 220,000 subscribers—an improvement on the 383,000 lost in the previous quarter and 520,000 in the year-ago quarter. T-Mobile CEO John Legere has already said that his company will overtake Sprint in total subscribers by the end of the year. 

 

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