Sprint has begun an ongoing series of layoffs, according to a filing with the Securities and Exchange Commission on Thursday. The carrier’s “workforce reduction plan” began at the tail end of last week and is set to continue for six months and to conclude June 30. Sprint said that both management and non-management positions will be affected, but did not say how many jobs would be lost.
The carrier expects a charge of around $165 million for severance and other costs associated with the layoffs. That amount will be included in its financial report for the fourth quarter of 2013, which is due to be released on February 11. Sprint also expects to see similar charges in the coming quarters.
Layoffs are nothing new at Sprint. The carrier laid off 800 people in customer service positions last August following its acquisition by SoftBank. This particular round of cuts is said to be part of an effort to reduce costs and improve efficiencies in order to better compete in the market. Competition in the wireless market is heating up for the carrier, as Sprint is caught between giants Verizon and AT&T and the smaller but more aggressive T-Mobile.
Interestingly, reports indicate that a merger of Sprint and T-Mobile may be in the works, since parent companies SoftBank and Deutsche Telekom are said to be in talks. However, Sprint has denied that these layoffs have anything to do with a potential merger.