US Sprint Plans Reorganization to Reduce Losses

WASHINGTON —  US Sprint Communications is planning a reorganization that will consolidate its seven divisions into three and may cut a few hundred jobs, an executive close to the company and a financial analyst said Monday.

The move, expected to be announced later this week, is aimed at streamlining operations and cutting losses for the nation’s third-largest long-distance telephone company.

“It’s a smart thing to do,” said Jack Grubman, a Paine Webber telephone analyst. “The result of this will be a more streamlined and more sensible organizational structure going forward.”

The jobs slated to be eliminated are administrative, legal and regulatory, but many of the employees whose jobs are cut will be absorbed by GTE Corp. and United Telecommunications, whose joint venture created Sprint in July, 1986, Grubman said. A source close to the company confirmed his information.