KANSAS CITY, Mo. (CBS.MW) -- Sprint on Friday said it will cut 1,200 jobs in its global markets division and streamline the unit's sales and other operations as part of an effort to reduce costs. Excluding severance costs, the move is not expected to have a material impact on the company's 2002 financial results or cash position, Sprint said. It did not provide an estimate of severance costs. "We are making significant steps that will enhance our focus on meeting financial commitments and position us to meet marketplace demands for 2003 and beyond," said Len Lauer, president of Sprint's Global Markets Group, in a statement. Sprint also said it will phase out digital subscriber line service, or DSL, in markets where it's too expensive to provide it or where the company has found cheaper means of supplying high-speed data or Internet access. DSL service is expensive to offer and not very profitable in areas where companies like Sprint have to rely on other local carriers to hook customers up. The company said DSL service in markets where it's the leading local phone provider won't be affected. On Friday, shares of Sprint (FON:
news,
chart,
profile) added 47 cents, or 4.2 percent, to $11.77. Communications carriers such as Sprint have seen demand for phone service diminish amid continued sluggishness in the U.S. economy. At the same time, fierce competition has pushed prices to all-time lows. With many carriers saddled with large debts and strapped for cash, they are seeking ways to reduce costs and conserve money. The severe financial difficulties at WorldCom, the nation's No. 2 long-distance carrier, have only pressed home the need for other phone operators to intensify cost-cutting efforts. Jeffry Bartash is a reporter for CBS.MarketWatch.com in Washington.
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