Why Sprint (S) Stock Is Lower Today

NEW YORK (TheStreet) -- Shares of Sprint (S) are down -0.70% to $5.70 in pre-market trade after new CEO Marcelo Claure told employees to expect further cost cuts and a more vigorous competitive edge, Bloomberg reports.

“In the short term, our success will come from our focus on becoming extremely cost efficient and competing aggressively in the marketplace,” Claure said in a memo obtained by Bloomberg News. “The management team has been working closely with the board to outline the future strategy of the company.”

The plan is likely to include job cuts, along with reducing costs for network infrastructure and lowering expenses for customer service by encouraging subscribers to use the Internet more, said David Heger, an analyst at Edward Jones, according to Bloomberg.. Sprint had about 36,000 employees at the end of March.

 

S ChartS data by YCharts

EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

More from Markets

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

What Angela Merkel's Uncertain Political Future Means for Greece's Debt Woes

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern

Goldman Is Bullish on Oil, Sees Demand Outweighing Inventory Concern