Soft­Bank slides af­ter Sprint said to plan Job cuts

The Pak Banker - - BUSINESS -

Soft­Bank Group Corp. fell the most in a week af­ter Sprint Corp. was said to pro­pose cut­ting 2,500 jobs and close call cen­ters as part of a plan to cut $2.5 bil­lion in costs.

The shares dropped 3.4 per­cent to 4,849 yen in Tokyo on Tues­day, end­ing the big­gest two-day in­crease since April 2014. Sprint, which is re­port­ing re­sults on Tues­day, plunged more than 12 per­cent in New York on Mon­day.

Soft­Bank's shares fell last week to their low­est since buy­ing Sprint in 2013 amid mount­ing pes­simism bil­lion­aire Masayoshi Son can turn around the money-los­ing U.S. car­rier. Son has said he al­ready sees "light at the end of the tun­nel" for a com­pany that booked losses in six of the past seven quar­ters, but the turn­around may take two years. Sprint is elim­i­nat­ing about 7 per­cent of its work­force, much of it from shut­ting call cen­ters, ac­cord­ing to a per­son fa­mil­iar with the sit­u­a­tion. Soft­Bank re­ports earn­ings on Feb. 10.

Sprint Corp has axed at least 2,500 jobs across six cus­tomer care cen­ters and its Kansas head­quar­ters as part of its plan to cut $2.5 bil­lion in costs, a com­pany spokes- woman said on Mon­day.

The job cuts, mostly in cus­tomer ser­vice, also in­clude 574 po­si­tions at Sprint's head­quar­ters at Over­land Park, Kansas, Sprint spokes­woman Michelle Boyd said.

Sprint, the fourth-largest U.S wire­less car­rier, has shut down call cen­ters in Vir­ginia, New Mex­ico, Ten­nessee and Texas and cut back jobs at its Colorado and Over­land Park call cen­ters, Boyd added.

The tele­com com­pany, which has kick started a turn­around plan, said last year it is look­ing at ar­eas such as la­bor costs, net­work ex­penses, in­for­ma­tion tech­nol­ogy and ad­min­is­tra­tive ex­penses to re­duce costs to the tune of $2.5 bil­lion.

In­vestors have been con­cerned that the com­pany, which is ma­jor­ity-owned by Ja­pan's Soft­Bank Group Corp, is burn­ing cash at an alarm­ing rate to ac­quire users and upgrade its net­work. Sprint no­ti­fied em­ploy­ees last week about the job cuts and sev­er­ance ben­e­fits through email, Boyd said.

As of Jan. 1, Sprint's work­force to­taled 33,000 em­ploy­ees. The com­pany has said that it planned to give lay­off no­tices to em­ploy­ees be­fore Jan. 30 as its sev­er­ance pack­age would be re­duced af­ter that date.

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