Although the telecommunications industry Outlook is expected to be brighter and more profitable than most over the next five years, companies like Sprint Nextel are beginning to feel the pain of this sluggish economy.

The company recently announced it will be cutting a total of about 8000 jobs by March 31, 2009.

The goal is to reduce both internal and external labor costs by approximately $1.2 billion on an annual basis. These job cuts will affect all levels of the company in various geographic locations said a spokesperson from Sprint. The company is based in Overland Park, KS and currently employs about 60,000 people.

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

Sprint is currently the third-largest wireless provider in the United States. Its main competition is AT&T and Verizon Communications.

Even employees that keep their jobs with Sprint Nextel will feel the pain. The company is also suspending its 401(k) match for the year, extending a freeze on salary increases and suspending its tuition reimbursement program.

Shares of Sprint have dropped dramatically in the past six months. A $10000 investment in Sprint stock in February of 2008 would only be worth roughly $2500 today.

Some big names have invested billions of dollars on the deal. Google, Comcast, Time Warner, Intel, to name a few are betting on the emerging WiMax standard. These companies will get a 22% stake in the new venture with Sprint/Nextel as the majority owner with 51% of the equity of the company.