Reston, Va. - Sprint Nextel (NYSE: S) said on Monday that it will cut 8,000 jobs -- about 14% of its workforce -- by the end of March to save about $1.2 billion a year on labor costs. The company said that the affected positions will include all levels of employees, with the impact varying by geographic location. The figure includes 850 positions to be eliminated under a voluntary separation plan started late last year.

"Labor reductions are always the most difficult action to take, but many companies are finding it necessary in this environment," said CEO Dan Hesse.

Sprint said that the bulk of the cuts will affect "non-customer facing" groups.

Other cost reductions will include a suspension of 401(k) matches and salary freezes.

Sprint has struggled since its acquisition of Reston-based Nextel in 2005, and has lost more than 3 million subscribers over the past year.

The company will take a $300 million charge related to the cuts in the first quarter.

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