New details about Sprint’s ongoing restructuring efforts came to light Friday, when Bloomberg reported the carrier will move toward a “decentralized” company model to improve customer service and retention in 19 major markets around the country.
The new model will include four regional offices that will each have a president who is assigned to certain markets, according to a memo obtained by Bloomberg. The new presidents will report directly to Sprint CEO Marcelo Claure, the memo said.
According to Claure, the move will help the carrier cater its fight for subscribers to each local market rather than launching generalized campaigns from its Kansas headquarters.
The new regional offices will also include unified teams to target all of Sprint’s customer base rather than each sales channel individually, the report said.
Though the memo once again acknowledged that the changes at Sprint will result in job losses, the company has not released any figures for the number of employees who will be terminated.
The changes – both in company structure and employee numbers – come as Sprint continues its turnaround efforts and looks to slash upwards of $2.5 billion from its operating expenses.
During Sprint’s third quarter earnings call earlier this month, CFO Tarek Robbiati said the cost reductions would come from a “fundamental shift” in how the company operates. Claure said the reductions will help the company become a “more nimble competitor” and will help reach the point of free cash load generation.
Robbiati and Claure have previously said that no aspect of the business is safe from cuts, which have already included the elimination of special transportation for Sprint executives, snacks for employees and severance pay. The company has also looked to cut its costs for service, including labor and customer care costs as well as roaming expenses from competitors.
In October, Verizon also announced changes to its regional office structure, reducing the number of locations from 20 to six as part of a restructuring effort in its wireless division. The company said the changes were expected to result in job losses but did not provide a specific figure.
Filed Under: Carriers
