Sprint Nextel to cut 8,000 jobs

On Monday Sprint Nextel announced it will fire 8,000 people as the economic meltdown cuts into the telecommunications carrier's business. The workforce reduction is expected to result in a $300 million charge in the first quarter for severance payouts, but also is anticipated to save the company $1.2 billion in annualized labor costs. In addition, Sprint plans to suspend its 401k match in 2009, as well as continue with its salary freeze for a second year. The telecommunications carrier's tuition reimbursement program will also be suspended this year.