The article I read in the Wall Street Journal describes, Sprint’s cost cutting plan in order to save 2.5 billion dollars. This $2.5 billion was lost in profits due to loss in customers and other expenses over the years. What was interesting about this article is how Sprint decided to go about ‘cutting’ this cost. They started by getting rid of the snacks they provided to the headquarters in Kansas. These snacks, which include water bottles and yogurt, were first provided in 2014 when a new CEO took over the company. The average cost of this snack program, was $600,000 a year. While this cost saving initiative might look nice on paper, but productivity of employees will certainly be affected by cutting these snacks.
Sprint’s other cost cutting initiative is to prevent executives from using limos or driver services. Instead executives are encouraged to …show more content…
At 3:30 pm on Monday, 30 minutes before the market closed Sprint’s stock was at $4.29. -.0.24 (-5.30%) from that morning. Over the course of the day, the stock price had dropped $0.31. I went to investigate the cause of this significant dip, only to find that earlier that morning Sprint had filed their 10-Q with the SEC. The most significant number in the 10-Q was the ending cash or cash equivalent at the end of the period; the current value for September 2015 was $1,972 while in 2014 the Ending cash was $4135. I believe, the reason for the decrease in stock price was simply a reminder of the previous earnings announcement that Sprint held. Investors were able to look at Sprint’s financials and see that despite the proposed cuts in snacks and transportation, Sprint has a long road ahead in order to meet their proposed goal. The price dropped to $4.28 when the market closed, leaving Sprint with a fairly negative day. I suspect that the price will continue to drop, in the after hours of the stock
Sprint’s other cost cutting initiative is to prevent executives from using limos or driver services. Instead executives are encouraged to …show more content…
At 3:30 pm on Monday, 30 minutes before the market closed Sprint’s stock was at $4.29. -.0.24 (-5.30%) from that morning. Over the course of the day, the stock price had dropped $0.31. I went to investigate the cause of this significant dip, only to find that earlier that morning Sprint had filed their 10-Q with the SEC. The most significant number in the 10-Q was the ending cash or cash equivalent at the end of the period; the current value for September 2015 was $1,972 while in 2014 the Ending cash was $4135. I believe, the reason for the decrease in stock price was simply a reminder of the previous earnings announcement that Sprint held. Investors were able to look at Sprint’s financials and see that despite the proposed cuts in snacks and transportation, Sprint has a long road ahead in order to meet their proposed goal. The price dropped to $4.28 when the market closed, leaving Sprint with a fairly negative day. I suspect that the price will continue to drop, in the after hours of the stock