In pursuit of cutting its expenses, Sprint Nextel will trim down labor costs by at least $350 million in the fourth quarter, resulting in the layoff of 2,000 to 2,500 employees. Sprint Nextel also mentioned that the layoff will affect both internal and contracted employees, but that it will take action to ensure that there is no impact on customer service.

Sprint suffered financially last quarter. The company widened its loss by 47 percent to $478 million. It lost 801,000 subscribers and its revenue dropped 9 percent.