Boston, MA 10/06/2014 (wallstreetpr) – Sprint Corporation (NYSE:S) has cost issues to deal with yet it also requires enough and quality skills to support its growth. T-Mobile US Inc (NYSE:TMUS) is increasingly becoming a thorn in the flesh of Sprint, but the latter wants to protect its turf as the U.S. No. 3 carrier. As such, Sprint announced plans to lay off some of its staff towards cost curtailment. Therefore, it has set aside $160 million to help it deal with the charges relating to the layoffs.
It is not clear how many people it wants to eliminate from its workforce, but Sprint (NYSE:S) made it clear that it will do away with some management and non-management positions. The latest layoffs could just be the beginning of more job losses in the company. When the new CEO, Marcelo Claure, took office recently, he promised to cut costs while also increasing the competitiveness of the company through attractive data plans and other strategies.
T-Mobile as a threat
Sprint Corporation (NYSE:S) sought to acquire T-Mobile US Inc (NYSE:TMUS) for about $32 billion, but it abandoned the course over fears that such a deal would not win the approval of the regulators. T-Mobile is growing very fast, especially in the wireless segment where it has made surprise user additions in the past few months. Sprint Corporation (NYSE:S) wants to cut costs and channel resources towards boosting its growth, at least to secure its third-ranked position in the U.S. market.
Sprint Corporation (NYSE:S) last reported its quarterly performance results on July 30, during which the company reported a smaller loss than was expected for the quarter. Its loss per share was $0.01, against the expected loss of $0.02. It generated revenue of $8.79 billion, ahead of the consensus estimate of $8.69 billion for the quarter. The quarter recorded revenue uptick of 1% YoY.
A number of analysts have commented on the stock of Sprint (NYSE:S), giving it a consensus “hold” rating and average target price of $7.50.