How many times can this happen until there’s nothing left of a once, legendary local employer?
And now the real facts about the Sprint layoffs you won’t find anywhere else.
Yesterday, word began to leak that Sprint was going to announce more cuts.
Cuts of Biblical proportions.
Early reports pinned the number at $1-1.5 billion with a capital B!
Sprint is notorious for floating trial balloons to lessen the blow of the real numbers, however this morning we awoke to various press releases that place that number closer to $2.5 billion, all to go down in the next six months.
Five conversations I had with senior management lead me to believe that may be a hair inaccurate. The real number being bantered about inside those walls comes closer to $8-$10 billion over the coming eight months.
Not even Harley with his enormous business brain can tell you the devastating effect cuts of this magnitude will have on the local employment picture.
But it validates my two year claim that we’re headed for the Left Coast, kids!
The Wall Street Journal quoted Sprint’s new CFO, Tarek Robbiati as saying they are implementing an external hiring freeze and the cost cuts “inevitably will result in job reductions.
“The main thing to consider when requesting to spend money is to take an owner’s mindset by treating every dollar as if it were your own.”
Robbiati then added that the finance department will be approving all expenditures – and by all – he means all.
A few facts bring Robbiati’s hidden meaning into focus.
Sixty days ago, Sprint issued a plan to do a “restack” of employees on campus.
That’s a process large, campus like facilities undergo to make sure people are in the correct offices, floors and buildings once they have undergone reductions in force or other foot print changes.
It properly aligns employees with their work group and departments for continuity.
As of now, that restack has been put on hold. It was to affect roughly 6,900 Sprint staffers.
The early numbers I’m hearing suggest Sprint will reduce headcount by 7,000 over the course of the next six months. Do you see a commonality there? Sprint is down to 31,000 employees as it stands today. Further, they are fast becoming much more a landlord than a tenant on the Sprint campus.
This struggle is real, folks.
Moody’s just placed Sprint in the junk range.
And Sprint has slipped to fourth-place, falling behind T-Mobile for the first time, fueling T-Mobile’s CEO John Legere’s never ending Twitter feud with Sprint honcho Marcelo Claure. It’s well worth following these two just for the comedic fodder as they duke it out in hate filled tweets!
While Sprint reported a much smaller-than-expected loss in the June-ending quarter and added a net 675,000 customers, churn remains their worst enemy. When more customers go out the back door than come in the front, that’s not good.
Given this news, the market still inched Sprint stock up another 0.3% at this writing.
Buckle up, Kansas City; it’s going to be a rough ride between now and this next Spring…
“Not even Harley with his enormous business brain”
– enormous ‘bs’ brain… there fixed; don’t mention it Paul.
🙂
Oh wow. How’d I miss that? Thanks so much; I owe you one.
Interesting read. http://asia.nikkei.com/Business/Companies/Where-did-Son-go-wrong-in-Sprint-business?page=1
you’ve already blown 3 stories on sprint…figured you’d give up….
but you’re still trying to be lois lane the big time investigative reporter.
Just don’t get stuck under any dashboards on the sprint campus!!!!!
hahahahahahhahahahahahahahah!!!!!!!!!!!! As one email read “he’s a
joke”!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
If “stupid” could fly, you’d be a Stealth bomber.
how many more stories will you blow boy? from the
pe*** story to the last 3 sprint stories you “blew” to the
dump jazz joint story that ended up being a belly flop…
to the picks you made in politics…you put everyone
on the floor laughing about your stories.
As one email said “the guys like a blind man going duck
hunting!” Spray the sky with bullets and maybe he might
hit someone or something!”
All this stuff is old…for reference go to any business
pub or analyst who follows telecommunications and you’ll
see this stuff daily…ven mad money had this weeks ago.
zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
Harley, you don’t get emails. You lose track of what I know and how.
There’s facts in this story that won’t be public for weeks or months.
You’re a sad little man to have nothing to do on Sunday night but repeat your same, tired insults for the umpteenth time.
Please, find something original. Your comments are just beyond painful and ignorant.
Facts were on line back in 2012 that sprint was
looking to move to California.
In the internet world and with the
number of sprint employees getting laid off
and writing on the net…there were no
secrets. Stories of cuts go as far back
as the day the campus opened……
In other words …many investigative journalists
were made fools of themselves for thinking that
with 10,000 employees rumors would not
fly.
Its a big company and from day one of the
approvals there were questions like “what happens if they move or downsize” what
do we do?
No secrets on the internet boys…and those
who think they havethe inside scoop end up
looking like damn fools.
See the guys on tv who are experrts….how many
predictions have they blown about sprint or
t moile…or at and t…or any of the other
thousands of stories they print.
then go to the right wing publications like
newsmax and see how many “economic experts”
predicted the last 30 recesssionss.
they’re all ful of bull.
listen to Harley and his upcoming pod cast
broadcast coast to coast and sign up at
law4life1000@yahoo.com.
Let the truth set you free…and make you look
like a fool!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
facts and the truth hurt really bad.
Harley is right again.
will they have the remaining employees march in the form of a p****?
remember…your momma knows best! hahahahahahahahahahahahaha!
get some soon!!!!!!!!!!!!!!!!!!!!!!!!!!111
Hahahahahahaharley! That is so funny that I completely forgot you’ve used that line in your last 27 comments!
That’s Harley, always keeping it fresh, new and original!
No doubt the changes will be moving to California. The Japanese owners won’t have to mess with traveling to the middle of the US. Their culture will be much more at home on the left coast.
Next …. AMC. The Chinese want California too.
Kansans .. any ideas of what company you can steal from Missouri to help replace them?
Son owns a massive estate in SoCal. I said before, he’s not going to stare out the window of his G5 and look down on his home flying over on his way to KC.
It will do one of two things; (1) move to Cali or (2) he’ll sell out in 12-24 months and it won’t be an issue.
duh…..that’s like glaze picking the Patriots over the
pee wee team in blue valley.
that’s not news…that’s just common sense that everyone
who has followed sprint from the start has figured
out for themselves.
what about the FOR SURE MERGER!!!!!!!!!!!!!!!!!!!!!!!!!!!
please….spare us!
funny how Wilson and polar bear never answer the
questions about the miscalculations they made over
the last years.
very funny that there’s no comeback…why? because
all the so called experrts prey on is the lack of knowledge
of the readers of kcc……………………….
of all the comments I get in my emails its where do these
so called insiders get these phony b.s. rumour and why
do they publish them without checking and rechecking
their validity.
I’m sure even someone with chuckies iq can figure that
one out!
Harley, you’re not smart enough to even follow the story line. You’re wrong more than you’re right and its a waste of time expaining things to you! I’m not wasting my breath any more. You’re not worth the investment in time or energy.
… and kansas will have another prison complex.
Did the state of kansas build the Sprint campus with kansas taxpayer money?
Sprint is like the old Stanley Steamer, an engineering feat among its competitors, but doomed to fail with no marketing. Now even the technology is old. It’s over, but Sprint doesn’t know how to die gracefully.
Their network only works in some major US cities and along some Interstate highways. You can’t expect to grow without having coverage. Heck I know Sprint employees here in KC who own other phones because Sprint does not have a workable network in the KC area.
Mr. Wilson,
Public companies, like Sprint, are required to make quarterly filings with the SEC. The reports are available at SEC.gov under the Filings tab then EDGAR Search Tools. The nice thing about commentary on public companies v commentary about politicians, is that facts from companies are subject to Audit and verification, with hefty penaltys for even accidental mistakes. So there is a trove of data available on these companies.
I find your claim of $10 Billion to be difficult to compute. With Selling, General and Administrative Expenses (SG&A) of ~$10 Billion, the company would have to cut EVERY SINGLE job that is not directly involved in the production of goods, in order to come close to the $10 Billion you cite. So they would have to cut much more than the 7000 jobs you cite, they would have to significantly cut in other areas as well. Their Cost Of Goods & Services excluding Depreciation and Amortization (COGS exl D&A) is ~$19 Billion (and that $19 B isn’t just salaries, it is materials, freight, maintenance, anything releated to the production of their business, including salaries attributed to production). So their total cost from operations that they could cut is $29 Billion. A ~$10 Billion dollar cut would be, well, interesting to say the least. That’s a 33% haircut.
If you are right about a ~$10 Billion dollar cut, that is an actionable trade. One could reasonably expect a cut of that magnitude to influence a swing in the stock price. But I just don’t see where they can cut $10 Billion. $2.5 can be supported by facts, and is a healthy scale back, but $10 Billion would be a sight to see.
As they say, “You can’t cut your way to profitability.” $2.5B is bad enough, I couldn’t even imagine a scenario where they cut $10B.
I should have clarified, that’s $8-10B target in total cuts planned, NOT cuts in the next six months. I have the video pod cast that backs up that claim.
But I agree with you, even over 5 years, I have no idea how that’s done. They are, in their words, “…burning $2B a quarter..”
Whew! Ok, thank you for the clarification. That is more reasonable. They state they cut $1.5 Billion in the last 12 months with the $2.5 B in the next six, they are up to $4B in cuts. It will get more and more difficult to find places to cut from $4b up to the $10B figure, but taking the 6 month horizon off the table, it becomes much more practical.
Thanks for the write up, Mr. Wilson.
(Postscript: I don’t need to see the Podcast, I believe you. But if you want to post it, I think it would be an interesting listen. Though, I don’t think it would do you any favors with your sources :P)
It’s an internal video presentation that was bootlegged to me. I’m not sure Sprint or my sources would appreciate that!
They are going through dangerous seas. I said from day one, Marcelo’s success has come from his start up companies. Difference here, he inherited a decades old CULTURE where the culture has become the customer. Turning that beast around IS the challenge. It may prove a burden too large.
SHOULD HAVE CLARIFIED??????????????????????
you should have clarified and rewritten every
article…including the one about theb pe888!!!!!!!!
oh boy…..please spare us!
I love Edgar Archives … great reading when you’re in a hotel room night after night.
Watched the fox biz news today…and already you’re “insider story” is off
AGAIN.
Maybe you’ll hit 1 out of 5 correct and equal glazes football pics!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1
hhahahahahahahaahah!
someone looks like a fool.
after edgar is quoted you want to reaarange your thoughts.
that means “I was wrong again”…..
hahahahahahahahaha.
like a fool.
LET ME CLARIFIE THIS which means really
let me change my story and show you that I’m not
really correct
The $8-10B is accurate. “Edgar” thought I meant that would be cut in 6 months. Which is not fact and not what I said.
So on both counts – Harley’s WRONG.
Hey, dip$hit, guess what? You’re wrong and Fox Business is wrong. All my facts came from the internal pod cast that was linked to me. So, are the CEO’s facts and statements inaccurate or is FOX wrong? And this is one time YOU want to reference FOX as your source? Idiot.
no sugar bear but with your
insider info always being wrong from the big antennas
to the sure fire merger….you really have no credibility
with the kcc readers.
you don’t check or double check and hearne is busy
selling autos and glaze is lining up comedy stars that
theres no one there to check what you say.
so i’ll got with the hundreds of people who have said
YOU ARE WRONG AGAIN….ONLY THIS TIME SUGAR BEAR
YOU WERE PROVEN WRONG BY A EDGAR READEER AND
YOU HAD TO “clarify” your comments.
that’s like making an admission that you were wrong…
as always…again…again…and again…….
HARLEY 100/ POLAR BEAR 0…….the score tells
the story.
and please don’t pay attention to me..no one pays attention
to your article except me when I correct your clariffications
or shall we say what they really are………
be honest…..someone can’t hit the broad side of a barn
with one correct fact and that’s the bear!!!!!!!!!!!!!!!!!!!!!!!
reaction to sugar bears stories…zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
because really who cares??????????????????????????????????????????????????/
its a dead story…and its in the star/cnbc/fox news/money mornings/mad money
long before you claim a “highly placed insider”…..
have fun playing lois lane!!!!!!!!!!!hahahahahahahahahahahahaha
Hey, HarleyKittyScrotun, here’s who CARES, here’s who can’t get enough of my writing, here’s who the pathetic fan boy is – YOU!
You can’t be 1/3-1/2 of the total comments on every story I write and claim otherwise.
If I wasn’t GOOD, if I wasn’t DEAD ON ACCURATE, if I didn’t have the sources on the news, you wouldn’t care!
But your rabid, repetitive non creative comments prove your devotion.
Suck it big, suck it long, suck it hard, gay blade.
I own you. That’s all you get now, you’re going back on ignore where you belong!
Hey, where’s that offer for the beer you’ve made?
Bring your W2 like I said or STFU!
Do it or you’re a fraud – respond to nothing but that; side by side W2’s and a beer, coward.
polar bear (according to inside sourves)….get your 10K bro….and don’t addd in anything you didn[t work for…know your game.
I know the truth and few on here have any facts or figures to prove
themselves except Harley and kerowack (who does do an excellent job
of using real world stats and info to prove his point….I may disagree but
with kero he’s got his ammo).
SOME PEOPLE…. (inside sources) have nothing but bullsh(t to
repeat that’s not only old but wrong.
I can’t count the number of times glaze and bear have been wrong…..
its amazing that hearne would allow these two to continue writing gibberish
and other b.s.
again…you’re wrong…I didn’t prove you wrong…edgar did and you had
to backtrack again and again and again to clarify and change your
story…….which is typical of all your articles you write or comment on.
the old kcc guys who most couldn’t run up a stairwell….are all seeing
the facts according to Harley.
I have spoken the truth….and that’s what counts.
if not…go to Sedalia or Chillicothe where they’ll take any
piece of writing and make a news story out of it.
bye bear..are we going to see before and after pics.
wait…just send the afters…l.the befores might be considered
obscene under the constitution of the u.s…..hahahhahahahahahahaha!!!!!!!!!!!!
hearne print them…at least we’d have something else to laugh at.
good day old boys.
your friend
harley
Thanks for all the comments from the loyal readers and people who have something to contribute.
Then, there’s the guy who claims to dislike everything I write, but he’s a full 38% of the comments, once again.
Thats why I call sick and twisted devotion that borders on the level of needing a restraining order.
That’s fine, Harley, keep trying to convince people I’m no good, but you’re sure addicted to my every last comment. You really need to get a life, kitty scrotum.
OK, NOW, you go back on heavy ignore. I’ll just scroll right past your repetitive, redundant, ignorant, fact-less comments.
Thanks for truly being my biggest fan, the numbers speak for themselves. When I write, Alexis shows an enormous boost to the reader count and you account for 1/3-1/2 of the comments. Next you’re going to be trying to jam your tongue down my throat will still claiming you hate me and are straight – both of which are lies.
Sprint strategy chief resigns http://www.bizjournals.com/kansascity/news/2015/10/15/sprint-strategy-chief-resigns.html
Terabeam, hmmm?