- Share plunge ends the largest two-day rally since April 2014
- Sprint to cut 2,500 jobs, shut call centers to reduce costs
SoftBank Group Corp. fell the most in a week after Sprint Corp. was said to propose cutting 2,500 jobs and close call centers as part of a plan to cut $2.5 billion in costs.
The shares dropped 3.4 percent to 4,849 yen in Tokyo on Tuesday, ending the biggest two-day increase since April 2014. Sprint, which is reporting results on Tuesday, plunged more than 12 percent in New York on Monday.
SoftBank’s shares fell last week to their lowest since buying Sprint in 2013 amid mounting pessimism billionaire Masayoshi Son can turn around the money-losing U.S. carrier. Son has said he already sees “light at the end of the tunnel” for a company that booked losses in six of the past seven quarters, but the turnaround may take two years.
Sprint is eliminating about 7 percent of its workforce, much of it from shutting call centers, according to a person familiar with the situation. SoftBank reports earnings on Feb. 10.