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.

 

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