Reports: Sprint Plans To Cut $2.5 Bln In Costs, Layoffs Expected

(RTTNews) - Sprint Corp. (S) is seeking to cut as much as $2.5 billion from its operating expenses and will also lay off an unspecified number of employees, according to media reports on Sunday. The measures are said to be part of chief executive Marcelo Claure's efforts to return the company to profitability and reverse subscriber losses.

Sprint, the third largest U.S. wireless carrier, is expected to provide more details about the job cuts when it announces its financial results for the second quarter on Tuesday, November 3. As at March-end, Sprint had 31,000 employees.

The estimated cost savings will be equivalent to about 10 percent of Sprint's annual operating costs of $25 billion. As part of the measures, executives would reportedly have to take Uber or regular taxis instead of hiring a driver with a limousine. The company will also not give any employee raises this year.

The company's executives have reportedly noted that the ratio of its capital expenditures to sales is more than 20 percent, higher than other wireless carriers. In August, Sprint reported a net loss for the first quarter on lower revenues and higher expenses.

S closed Friday's trading at $4.73, down $0.07 or 1.46 percent on a volume of 14.5 million shares.