The stock price of Sprint Cor (NYSE:S) plunged more than 12% to $2.52 per share after the company’s officials confirmed the elimination of more than 2,500 jobs, according to a report from the The Kansas City Star. The wireless telecommunications company already lost more than 41% of stock value over the past year.
Sprint officials told the media outlet that around 2,000 employees lost their jobs at the company’s six call centers and 574 others were terminated from its headquarters in Overland Park, Kansas.
The workforce reduction was part of Sprint’s efforts to cut costs by $2.5 billion. The wireless telecommunications company already eliminated more than 6,000 jobs since the fall of 2014 when it started its massive workforce reduction to achieve its target cost-cutting.
Sprint to provide severance benefits to affected employees
Marci Carris, senior vice president of customer care at Sprint said the company already sent the layoff notices to employees. All of those who lost their jobs will receive severance benefits (two weeks of pay for every year employed) plus $1,000.
The report also indicated that the severance benefits for employees who will receive layoff notices after January 30 will be one week of pay for every year worked.
Sprint spokeswoman Michelle Boyd said Sprint is expected to complete sending the layoff notices to employees by January 30.
Last week, Sprint informed Kansas official regarding the termination of the employment of its 829 workers at its headquarters in Overland Park.
The wireless telecommunications company is closing or reducing its call centers in Colorado, New Mexico, Virginia, Tennessee, and Texas.
According to related reports 178 employees lost their jobs in Arapahoe County, Colorado; 444 people were impacted in Tennessee, and 394 others were laid off in New Mexico.
Sprint is encouraging customers to check their bill balances, device upgrade status, phone lease status, and make payments online or through the Sprint Zone app.