U.S. Cellular to Cut 1,000 Jobs as Part of Sprint Divestiture
U.S. Cellular today explained some of the thinking behind its decision to sell about 10% of its customers in addition to select PCS wireless spectrum to Sprint. According to U.S. Cellular, the customers in the large markets it is divesting (Chicago, St. Louis, South Bend, et al.), were more costly to obtain and had a churn rate twice as high as that of other markets served by U.S. Cellular. U.S. Cellular said that it expects to close its retail stores, offices, and network centers in the markets affected, and it will not retain the employees working at those locations. Total job loses amount to more than 1,000 employees, mostly in the greater Chicago areas. U.S. Cellular will, however, keep its corporate headquarters (and about 860 jobs) in Chicago. U.S. Cellular believes that the transaction, which is valued at $480 million and still subject to regulatory approval, will allow it to better focus on expanding and improving services in markets where obtaining and retaining customers is more cost effective. U.S. Cellular expects the deal to close in mid 2013.
from U.S. Cellular
Good for Chicago customers