Sprint will trim between 5 percent and 7 percent from its operating budget, resulting in more than $1 billion in annual savings over the next three years, its CEO said this morning.
The voice and data service provider said the initiative includes: consolidating systems and reducing reduncancies; automating some processes; and recasting the organizational setup.
We are putting a high priority on simplifying our business processes,” Chairman and CEO Gary D. Forsee said. “The entire leadership team at Sprint is fully engaged in the company’s transformation.”
Forsee also outlined plans to increase revenue for the Overland Park, Kan., company.
For example, Sprint will combine some of its products and services — national wireless, long-distance and Internet — into new bundled offerings and bolster its sales channels, including retailers and partners. It also hopes to convince its current customers to buy new services.
“One of Sprint’s chief advantages is our customer base of over 26 million unique users,” Forsee said. “Increasing penetration of our products and services into that existing base by even 1 percent or 2 percent can equate to hundreds of millions of dollars in new revenue,” Forsee said.
In addition to moves on the revenue and costs side, Sprint said it is working to reduce the debt on its balance sheet. Over the last two quarters, Sprint has reduced its net debt by more than $3.5 billion, more than halfway to its two-year goal.
Sprint expects will advise investment analysts on how revamping affects 2004 forecasts in December.
In other Sprint financial news Forsee said he still anticipates that the company’s two stocks and a tracking stock for its wireless business
will ultimately be combined, however no timetable has been set.
