Telecompaper

Sprint Nextel wants to reduce labour costs in the fourth quarter by at least USD 350 million on an annualised basis. To achieve its goal, the provider will eliminate 2,000 to 2,500 positions within the entire company, with the bulk scrapped by end-December.The labor cost reductions are the latest action in the company's efforts to make its cost structure more competitive in the industry and to remain financially secure in a challenging economic environment. Sprint expects to take a charge of around USD 60-80 million during the fourth quarter for severance and related costs associated with its personnel reduction. At the end of the third quarter 2009, the company had a balance of USD 5.9 billion in cash, cash equivalents and short-term investments, and said that it expects to continue to generate positive free cash flow during the fourth quarter.