February 24, 2006

Sprint Nextel Corp. will reduce its work force by a net 4 percent in 2006, or about 2,500 people, company officials told the Kansas City Business Journal.

Sprint Nextel Corp. officials could not immediately be reached for comment.

According to the Business Journal, the move to cut 4,500 jobs across all departments while adding 2,000 new jobs in areas such as Voice over IP services was due to the company’s need to rein in costs following Sprint’s merger with Nextel Communications Inc.

An unspecified percentage of the job cuts will come from attrition, and company officials indicated that further job cuts are possible as the company rationalizes its post-merger operating costs.

Sprint Nextel reported a 55-percent drop in its earnings earlier this week, and cited merger-related expenses as the major factor contributing to its performance.

Source: RCR

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