Sprint disclosed that it’s taking another $105 million charge for severance and other costs related to its ongoing workforce reduction plan.
The additional charge, coming during the quarter ending in September, is on top of the already $160 million the company has dished out in severance related to its current round of layoffs. Sprint said in an SEC filing that it may experience further material charges in future financial periods.
The carrier expects the majority of the new charges to result in cash expenditures by June 30, 2015. Sprint still expects its workforce reduction plan to conclude by March 31, 2015.
This new round of charges comes after Sprint CEO Marcelo Claure during his company’s latest earnings call revealed that Sprint was planning to cut another 2,000 jobs.
This fall, Sprint will cut 3,700 jobs or 11 percent of its total workforce. The layoffs are part of Claure’s anticipated $1.5 billion reduction to Sprint’s budget.
The Kansas City Star says the current cuts will bring Sprint’s total workforce to 29,000, down from 39,000 at the end of 2012—or as the paper estimates, one in four Sprint jobs cut over the last two year.
Sprint reported an operating loss of $192 million on $8.5 billion in net operating revenue for its latest quarter.
