Advertising

The Seattle Times Company

NWjobs | NWautos | NWhomes | NWsource | Free Classifieds | seattletimes.com

The Seattle Times

Business / Technology


Our network sites seattletimes.com | Advanced

Originally published Tuesday, January 9, 2007 at 12:00 AM

E-mail article     Print view

Sprint to cut 5,000 jobs; sales forecast falls short

Sprint Nextel, the third-largest U.S. wireless-phone carrier, will cut about 5,000 jobs this year and forecast 2007 sales that may miss...

Bloomberg News

Sprint Nextel, the third-largest U.S. wireless-phone carrier, will cut about 5,000 jobs this year and forecast 2007 sales that may miss analysts' estimates.

The shares dropped 7 percent in extended trading after Sprint said sales in the year ending in December will be $41 billion to $42 billion, compared with the $42 billion average estimate of 26 analysts surveyed by Thomson Financial. Revenue in 2006 was $41 billion, Sprint said.

Sprint said 306,000 customers defected in the fourth quarter, extending losses from the third period. Sprint struggled to keep subscribers after the merger of Sprint and Nextel Communications.

"The integration is taking longer than originally anticipated," said Michael Nelson, an analyst at Stanford Group in New York. "This is an acknowledgment by management that there still needs to be further restructuring in the business to turn this thing around."

Sprint shares dropped $1.44 cents to $18.20 in extended trading, after rising 43 cents to $19.64 in the regular session.

Chief Executive Officer Gary Forsee, who ousted his deputy, Len Lauer, in August, vowed in October to turn the slide around. The company is reviewing its advertising agencies and will make a decision this quarter. In the meantime, marketing initiatives will be "aggressively pursued," the company said in the statement.

Copyright © 2007 The Seattle Times Company

More Business & Technology headlines...

E-mail article Print view      Share:    Digg     Newsvine

advertising

An 802.11n upgrade could make a big difference

Retailers opening doors on Thanksgiving Day

Google makes concessions on digital book deal

Critics want to block Comcast-NBC deal

Google submits revised book settlement

Advertising

Video

Opening day at Crystal Mountain
Skiers crowded the slopes at Crystal Mountain for one of the resort's earliest openings.

Video shows violent arrest by SPD
Fort Lewis Memorial
Highlights: Ken Auletta talks about "Googled"
Seattle International Cabaret Festival
Ken Auletta talks about "Googled"
Medal of Honor
Pelosi answers questions at Swedish Medical Center
Pelosi speaks at Swedish Medical Center
"Pistol" Pete Ryan

Marketplace

nwautos

2009's most fuel-efficient sedansnew
Choosing a new sedan? Weigh the impact of your choice on your wallet and on the planet.
Post a comment

Open Houses

Find this weekend's open house listings.
Or search by location:

 
Most read
Most commented
Most e-mailed
 
 
Advertising