After losing more than 880,000 net users during fourth quarter, Sprint Nextel (NYSE: S) announced a plan to streamline its business in anticipation of "continued downward pressure on subscriber trends, revenues, and profitability in 2008."
The company will be eliminating 4,000 employees, eliminating 4,000 third-party distributors, and closing 125 company-owned retail stores; the latter of which amounts to 8% of its 1,400-store company owned fleet.
As a result of these moves, Sprint says it will save $700-$800 million in labor costs.
This article appears in "CoStar's Retail News Roundup: Jan. 27 to Feb. 2, 2008," a weekly feature written by CoStar News Senior Editor Sasha M. Pardy. In this issue, CoStar reports on expansions and new concepts at Robeks, Abercrombie, IPic, Ethan Allen, Captain D's and Del Taco ; new retail developments in NJ, WA, TX, and OK; acquisition, merger, or sale activity at Inland American, Cedar and Retail Ventures; store closings at Buffet Holdings, Cost Plus and Sprint Nextel; sustainability at Wal-Mart; personnel announcements at Shea Properties; Sears reorganization and replacement of its CEO, and more.