Sprint PCS to close service centers

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Posted 9:24AM on Saturday, February 16, 2002

KANSAS CITY, MISSOURI - Sprint PCS announced Friday that it will close five of its customer service centers, cutting an estimated 3,000 jobs. The wireless carrier cited customers' increased use of automated self-service tools. The cuts represent about 9 percent of PCS' work force and follow the layoffs of 6,000 employees and 1,500 contract workers in recent months. Sprint will keep eight customer service centers open. Centers in Atlanta, Tallahassee, Fla., and Jacksonville, Fla., will be closed April 16. The center in Lawrence, Kan., will be closed May 31 and a center in Irvine, Calif., will close June 28. Sprint spokeswoman Jennifer Walsh said Irvine will lose about 1,100 jobs, Jacksonville, Atlanta and Lawrence will lose about 500 each and Tallahassee will lose about 300. The closings will save PCS an estimated $60 million annually and help Sprint become more efficient in a highly competitive industry, said Charles E. Levine, president of Sprint's PCS division. Customers can access their accounts, pay their PCS bills, monitor air time and buy phone accessories through the company's Web site. ``More and more of our customers are using automated self-service functions rather than wanting or taking the time to talk to a customer service advocate,'' said PCS spokesman Dan Wilinsky. ``We are making progress, but we did have to make this move today to improve our competitive position and reduce our costs.'' Sprint is suffering through bleak times in the telecommunication industry. The company's FON and PCS divisions last week reported a combined net loss of $1.4 billion. Sprint said it will take a one-time charge of $25 million against 2002's first-quarter earnings related to the cuts. Sprint's PCS shares fell 93 cents, or 9 percent, to $9.27 on Friday on the New York Stock Exchange.