Friday, January 18, 2008

Sprint is Getting Rid of 4,000 jobs in the US!

The Wall Street Journal is reporting that Sprint is eliminating 4000 jobs largely due to its inability to attract and retain customers. Consider these numbers from the article-

In Q4, 2007, the company-
1- Lost 683,000 customers who had signed annual contracts.
2- Lost 202,000 pre-paid customers.
3- At the same time, they were able to attract 776,000 customers through partners.
4- Importantly, the company has been losing high-value customers.

Why is this happening? Sprint attracted too many low-end customers with bad credit. These people are now having a tough time keeping up with their phone bills.