Market Overview

Sprint 8-K Highlights Workforce Reduction To Control Costs, Expects To Recognize Charge Of $150M In Q3 2015


On December 16, 2015, Sprint Corporation (the "Company") began implementation of a workforce reduction plan to reduce costs. The plan is expected to include steps to, among other things, improve operational efficiencies and reduce costs, as a result of which the Company expects to incur material charges under generally accepted accounting principles. This planned reduction is expected to be largely completed by January 31, 2016 and will include certain management and non-management positions.

The Company expects to recognize a charge of approximately $150 million in the third fiscal quarter of 2015 for severance and related costs, however, additional material charges associated with future labor reductions may occur in future periods. This estimated charge for the severance and related costs was determined based on an existing employee benefit severance plan and based on the information available as of the date of this Form 8-K. The majority of the above estimated charge is expected to result in cash expenditures by December 31, 2016.

This Current Report on Form 8-K contains statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements regarding the anticipated future charges and cash expenditures relating to the reduction in force. All of the charges in this Form 8-K are estimates and are subject to change. These forward-looking statements give the Company's current expectations and are based upon management's expectations that involve a number of risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Such risks and uncertainties include, but are not limited to the following: separation costs that differ from original estimates because of the timing of employee terminations and the amounts of related charges. The Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised, however, to consult any further disclosures the Company makes on related subjects in its reports on Form 10-Q, 8-K and 10-K submitted to the SEC. You should understand that it is not possible to predict or identify all risk factors. Consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

Posted-In: News Press Releases


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