Jun, 2003 : Sprint to Exit Web Hosting, Cut 500 Jobs
📅 - Sprint (sprint.com) confirmed month-long rumors late Tuesday by announcing that it is exiting the Web hosting market. Shutting down the division, which saw $60 million in revenue for the year ending March 30, 2003, will result in 500 layoffs.
The company said it has implemented a migration plan that will see it transition current hosting customers to ?preferred? third-party providers or strategic partners. Once the customer migration plan has been completed, Sprint will begin phasing out operations at eight Sprint E|Solutions Centers across the United States.
Sales of hosting, including managed hosting and colocation services will cease immediately.
According to the company, the decision to exit the hosting space ?reflects an ongoing evaluation of the company's strategic direction by Sprint's new executive management team."
Sprint's Web hosting business lost 10 cents a share on revenue of about $60 million over a 12-month period.
?Sprint's priorities have clearly been articulated and include growing top-line revenue and protecting and improving the company's bottom line,? said Howard Janzen, president of Sprint's Global Markets Group. ?Those priorities require us constantly to monitor and review which areas make both economic and strategic sense to pursue on behalf of customers, investors and shareholders.?
Sprint is the fourth largest telecommunications company in the United States.
The company said it has implemented a migration plan that will see it transition current hosting customers to ?preferred? third-party providers or strategic partners. Once the customer migration plan has been completed, Sprint will begin phasing out operations at eight Sprint E|Solutions Centers across the United States.
Sales of hosting, including managed hosting and colocation services will cease immediately.
According to the company, the decision to exit the hosting space ?reflects an ongoing evaluation of the company's strategic direction by Sprint's new executive management team."
Sprint's Web hosting business lost 10 cents a share on revenue of about $60 million over a 12-month period.
?Sprint's priorities have clearly been articulated and include growing top-line revenue and protecting and improving the company's bottom line,? said Howard Janzen, president of Sprint's Global Markets Group. ?Those priorities require us constantly to monitor and review which areas make both economic and strategic sense to pursue on behalf of customers, investors and shareholders.?
Sprint is the fourth largest telecommunications company in the United States.
Reads: 1905 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/spr061103.cfm
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