Sprint Corp. is preparing to cut as much as $2.5 billion in costs in the next six months, as the struggling wireless carrier steps up its belt-tightening.
In a memo to staff this week, Sprint's new chief financial officer said the company needed to cut between $2 billion and $2.5 billion in costs and announced an external hiring freeze.
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The cuts "inevitably will result in job reductions," Tarek Robbiati, Sprint's chief financial officer, wrote in the memo, which was reviewed by The Wall Street Journal.
Sprint employed about 31,000 people as of the end of March.
Mr. Robbiati said the finance department must review and approve all expenditures. "The main thing to consider when requesting to spend money is to take an owner's mindset by treating every dollar as if it were your own."
The announcement comes days after Sprint said it would sit out the next major auction of wireless airwaves, which will save the company billions of dollars but limit its options for network upgrades in the long run.
Cutting $2.5 billion in costs is an ambitious target. The company had $7.5 billion in operating expenses during the three months ended June 30. The company has said previously it cut $1.5 billion in expenses in the last 12 months.
(By Ryan Knutson)