Leap Wireless Scales Back Distribution; Cuts 120 JobsWednesday, January 23, 2013
Leap Wireless International Inc., the San Diego- based provider of flat rate, prepaid cellphone services called Cricket, said it scaled back the retail distribution partners, keeping two major chains Wal-Mart and Radio Shack following the company’s decision to improve customers’ buying experiences.
The changes resulted in the elimination of 120 jobs from Leap’s payrolls, including about five at its headquarters office, said spokesman Greg Lund.
The major chains no longer in Leap’s distribution network are Target, Kmart, and Dollar General Stores, he said.
Leap’s national chain stores now number 5,000. It also sells Cricket through a network of company-owned stores and dealers at 2,700 stores, and 2,175 indirect dealers.
Following the job cuts, Leap has about 420 workers at its headquarters office, and total employment of about 3,800, Lund said.
For the nine months ended Sept. 30, 2012 Leap reported a net loss of $115 million on revenue of $2.4 billion, compared with a net loss of $230 million on revenue of $2.3 billion for the nine months ended Sept. 30, 2011.
Leap is expected to report its fourth quarter and year end results next month.