Sprint Nextel Corp.'s stock plunged after the wireless carrier said it will cut 4,000 jobs and close 125 retail locations in response to a steep drop in its customer base. Sprint shares plummeted nearly 25 percent, prompting analysts to forecast even more cuts in the coming months as the nation's third-largest wireless carrier struggles to compete with AT&T Inc. and Verizon Wireless. The layoff of about 6.7 percent of Sprint's work force and closure of 8 percent of its stores is to be completed in the first half of the year. Sprint said in a news release that the cuts will trim labor costs by $700 million to $800 million a year. Some analysts said the moves would not be enough to stem losses resulting from a fourth-quarter loss of 683,000 so-called postpaid subscribers.
See "Sprint Nextel to Cut Jobs, Close Stores", Margaret Stafford, San Francisco Chronicle, January 20, 2008