Sprint Nextel Corp. will cut a total of about 8,000 jobs by March 31, the company said Monday.

The plan is to reduce internal and external labor costs by about $1.2 billion on an annual basis, Sprint Nextel said in a press release.

The cuts will affect all levels of the company and various geographic locations, said telecommunications company, which 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, the third-largest wireless provider in the country, repaid $2 billion in debt in the second half of 2008. The Overland Park, Kan.-based company has struggled against its more healthy rivals,AT&T (T, Fortune 500) and Verizon Communications.

The job reduction total includes about 850 positions that the company said it expected would be eliminated under a voluntary separation plan started in late 2008.

(YWN Business Desk)