Sprint Slashes Thousands of Customer Service Jobs

Despite reporting its lowest-ever churn rate, Sprint has taken the axe to at least 2,500 jobs, mainly in customer service, across six customer care centers as well as its Kansas headquarters, as part of a plan to cut $2.5 billion in costs.

Sprint could not immediately be reached for comment, but according to the Kansas City Star, ?EU?company officials?EU? confirmed the cuts on Monday. The paper also cited an e-mail Sprint sent to its employees last week outlining the changes. In addition to the layoffs in the customer care department, the Star said Sprint is also firing five vice presidents. Reuters reported on Monday that company spokesperson Michele Boyd confirmed the cuts.

On the surface, this doesn?EU?t make much since given the company?EU?s earnings release for the third fiscal quarter of 2015 that were announced earlier this week. The company posted growth in postpaid phone customers for the second consecutive quarter. In fact, Sprint saw the highest number of new customers in three years during that period -- 366,000 -- and a mere 1.62 percent churn rate.

?EU?It?EU?s clear from our quarterly results that we are making great progress on achieving our goals,?EU? said Sprint CEO Marcelo Claure, in a statement. ?EU?Revenue has stabilized, costs are coming out faster than expected, postpaid phone net additions were the highest in three years, postpaid churn was the lowest-ever for a third quarter, and the network is performing at best-ever levels.?EU?

No Impact on Customer Service?

All told, Sprint reported the highest postpaid net ports on record, meaning it attracted more of its competitors' customers than it lost to competitors. The company also saw net operating revenue of $8.1 billion. So why all the cuts? Independent telecom analyst Jeff Kagan told us he doesn?EU?t have any clear answers, but he?EU?s convinced that the company isn?EU?t making the move...

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