Sprint slashes customer service jobs since SoftBank deal

Facts on Sprint and Masayoshi Son

Softbank acquired Sprint in July 2013, promising growth and improved service for consumers. Since then, Sprint has laid off more than 2,700 call center workers and 330 technical consultants, closing 150 customer phone repair locations and 55 retail stores.

Now, Sprint’s chairman, Masayoshi Son, wants to  acquire T-Mobile. Given Sprint’s track record, a deal could prove costly for American workers and consumers.

More than 2,700 Layoffs Since July 2013
In March 2014, Sprint announced plans to lay off more than 1,600 workers and reduce operations at six call centers. The layoffs include: 400 in Orlando, Florida (MyNews13); 450 in Fort Worth, Texas (Star-Telegram); 170 in Temple, Texas (KWKT); 240 in Sacramento, California (Sacramento Bee); 200 in Overland Park, Kansas (KSHB); and 154 in Elmsford, New York.

Also in March, Sprint said it would lay off 330 technical consultants and close 150 service and phone repair centers and 55 retail locations. In August 2013, the company cut about 800 jobs nationwide, including jobs in Fort Worth, Texas, Temple Texas, and Orlando, Florida. See also: Star-Telegram, March 2014; Re/Code, March 2014; CNET, March 2014.

Workers Given Little Notice
Sprint announced the call center layoffs on March 19, 2014, and said the employees would continue to work through March 25 and be paid through April 8 (Kansas City Business Journal, March 2014). The job cuts came with little warning even though federal law requires at least 60 days notice before mass layoffs (US Department of Labor). New York law requires 90 days notice.

Sprint Defends its Customer Service
Sprint insists that it closed the call centers due to the effectiveness of its customer relations program. “Those reductions come as the result of greater efficiencies that we’ve achieved through simpler pricing plans and improved customer service — which have resulted in fewer calls to customer service — as well as adjusting to changing marketplace dynamics,” said a Sprint representative (Re/Code, March 2014).

But Sprint Ranks Last in Service
J.D. Power and Associates ranked Sprint lowest among U.S. wireless carriers in customer service in a report released March 2014 (J.D. Power, March 2014). In November 2013, a Consumer Reports survey of more than 58,000 American wireless subscribers placed Sprint dead last in customer satisfaction after the carrier received low ratings for both pricing and network reliability. The Consumer Reports ranking represents a drop from last year, before Sprint was acquired by Softbank. (BGR, November 2013).

More than 20,000 Layoffs from 2007-2010
Sprint has a long history of job cuts. From 2007-2010, Sprint cut more than 20,000 jobs and closed 30 call centers (Wall Street Journal, July 2011). The company has also sent much of its call center work outside the U.S., including to India, the Philippines, and Mexico (Los Angeles Times, March 2009). In 2010, Sprint outsourced 6,000 positions and the management of its wireless network to Sweden-based Ericsson (Gigaom.com, 7/9/09).