NII Holdings Will Cut 1,400 JobsNiamh Ring
NII Holdings Inc., which sells Nextel-branded wireless service in Latin America, will cut at least 1,400 jobs and reduce its headquarters staff by more than 25 percent as the carrier struggles with subscriber losses.
Employee severance will cost as much as $35 million, the Reston, Virginia-based company said in a statement. About $8.6 million in charges to restructure activities at a Mexican unit will be included in third-quarter results, and the rest will be mostly in the fourth quarter. The cuts are expected to produce as much as $55 million in annualized cost saving.
NII faces mounting competition in Latin America from America Movil SAB and Telefonica SA, which offer faster download speeds for smartphones. The company also expects to lose about 400,000 subscribers in Mexico this quarter because it is more aggressively disconnecting inactive prepaid customers.
NII shares fell 8.3 percent to $2.42 at the close in New York. The stock has slumped 66 percent this year.