Sprint's Global Markets Group exits data biz, cuts staff
Sprint Corp. continued its march toward a leaner company on Friday, announcing plans to streamline its Global Markets Group, including shedding jobs, integrating its data hosting business to other areas of the company and dumping DSL.
The Global Markets Group, which includes Sprint's long-distance business, will exit the DSL game in cities where it has found a better way to deliver service or where the high access and infrastructure costs make it difficult to continue service. Sprint has stressed that its business division will continue to offer its Sprint FastConnect DSL service.
The company also will integrate its E/Solutions' Web hosting sales, mobile-computing consulting, marketing, product and sales support functions into its Network Services unit.
As part of its restructuring plan, the company plans to erase 1,200 jobs from various areas of the group over the next several weeks. Of the 1,200 cuts, only 1,100 employees will be affected because the other 100 positions are vacant. The job cuts follow a string up staff reductions carried out throughout Sprint over the past several months, including 7,500 cuts in October and 3,000 cuts in February.
"We are making significant steps that will enhance our focus on meeting financial commitments and position us to meet marketplace demands for 2003 and beyond," Sprint's Global Markets Group President Len Lauer said in a statement.
In June, Sprint's credit rating was cut to a notch above "junk" status by Moody's Investors Service.