A report from the Wall Street Journal says that Sprint Nextel Corp. (S) plans on laying of a "few thousand" people, citing people close to the situation.
While the company claims it's related to subprime mortgages and the economy, in reality it's probably more related to the ongoing customer service problems they haven't been able to get a handle on. The company has also fallen behind in growing its subscriber base in comparison to its two larger competitors Verizon Wireless (VZ) and AT&T (T).
Also a problem that persists with the company is the administrative inefficiencies still hanging over from the time Sprint bought Nextel in 2005. To combat that, new CEO Dan Hesse is looking at a plan to move some executives from Nextel's former headquarters in Reston, Va. to the company home in Overland, Kansas, in order to bring the decision-making under one roof.
Sources caution that this isn't a for sure thing yet. Still, it reveals the huge rift internally in the company that hasn't been brought together yet. That will have to be done if Sprint expects to grow their market share and improve their customer service.
At this time Sprint has about 54 million wireless subscribers, and is the No. 3 carrier in the U.S.
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