Sprint has confirmed it plans to layoff about 4000 people, as The Reston Citizen reported last week. The Wall Street Journal, who originally ran the story also claimed the Reston corporate headquarters would be moved to it’s operational headquarters in Overland Park, Kansas, but the company has remained silent on it’s intentions there.
Steve Fuller, an economist at George Mason University says this about the potential damage (or lack thereof) that would affect Reston and Fairfax County. Here’s what the Reston Times reports he said:
“Fairfax County has a 2.1 percent unemployment rate, we have a shortage of highly-qualified workers,” he said. Most former Sprint Nextel employees “would probably find a pretty good job if they wanted to,” he added.
As for the county’s reputation, Fuller said it’s economy is so strong that it would easily withstand the change. Fuller’s annual economic forecast for the county has a projected increase of 13,000 jobs, and its unemployment rate remains well below the national average of 5 percent.
The Reston headquarters of Sprint employees about 4500 people, which has lead to speculation about headquarters move. Sprint’s new CEO, has proposed large changes for turning the company around, including closing over 4,000 retail locations.
A sign marks an entrance to Sprint’s, Reston, Virginia headquarters.
The Wall Street Journal reports that Sprint is going to lay off thousands, and possibly move it’s headquarters back to Overland Park, Kansas. This follows a string of business relocations from the Dulles Technology Corridor in 2007 including PRA leaving for North Carolina, and AOL moving to New York.
The tip comes from an anonymous source. As usual a Sprint spokesman said, “We don’t comment on rumors.”
The 59,000 strong company would pink slip about 5,000 people. As customers have run from low quality service, and non interoperability between Sprint and Nextel’s network, corporate income has taken a serious decline. Sprint leadership has taken drastic measure to shore up revenues including an announcement in early 2007 about job layoffs. In todays trading Sprint’s share price fell 3 cents to $12.33.
Sprint currently maintains operational headquarters in Overland Park. Almost 13,000 work in the Kansas location, while a little less than 5000 work in the Washington, DC area. Reston only became Sprint’s headquarters after its 2005 takeover of Nextel.
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The Sprint Nextel headquarters. Sprint rejected a $5 take over bid by a South Korean telecommunications firm.
In this weekly column on the state of Reston’s local economy we explore what’s happening in the business scene.
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