Published: May 18, 2016
In 2011, Sprint announced plans to relocate its call center from Bristol, Virginia, to a new 48,500-square-foot facility in Sullivan County, Tennessee, just a few miles away. The move was touted as bringing 600 jobs to the region, but by February 2016, the reality was far bleaker. **The exact number of layoffs (444) and the specific timing (February 2016) could not be independently verified due to limited primary sources, but the layoffs align with Sprint’s cost-cutting measures.** Of the workers who had transferred, 444 were laid off, despite earlier promises of job security.
In a written statement, a Sprint corporate spokesperson who declined to be named stated:
Sprint is in the middle of a multi-year turnaround strategy. We are radically transforming how we do business and are laser-focused on creating a superior network, being the price leader in the wireless industry, and providing a positive customer experience. We are making progress, and our business is heading in the right direction.
However, this “right direction” offered little comfort to the workers who relocated only to lose their jobs. Sprint’s statement also referenced a goal to reduce “$2.5 billion of costs,” signaling a broader cost-cutting strategy that prioritized profits over employee stability.
By May 2016, the narrative shifted as Agero, a roadside assistance company, took over the Sullivan County facility. Tennessee officials, including TVA Senior Vice President of Economic Development John Bradley, claimed Agero would create “hundreds of new jobs.” Specifically, Agero announced plans to hire 585–600 workers. **Agero announced plans to create 585–600 jobs in the former Sprint facility, likely rehiring some former Sprint employees while also hiring new staff, though this does not constitute true job creation as the roles and facility remained largely unchanged.**
Tennessee Economic and Community Development Commissioner Randy Boyd stated, “More than 12,600 Tennesseans work in nearly 200 telephone call centers across the state, and it is great to have a company like Agero strengthening our Team Tennessee workforce by creating these valuable jobs in Sullivan County.” Yet, these claims ring hollow. The facility, operational since April 25, 2016, largely employed the same workers in the same roles, handling calls from vehicle owners on behalf of manufacturers and insurance providers. This was not job creation but a rebranding of existing positions.
**Agero is set to invest $3.5 million in renovating the former Sprint facility, though the value of any corporate welfare package remains undisclosed in reports.** While Agero’s investment was reported as $3.5 million (*WJHL*, January 2016), the lack of transparency about potential incentives mirrors the corporate welfare practices that facilitated Sprint’s earlier move.
Sprint’s initial relocation was fueled by significant corporate welfare. Bristol, Virginia, offered a nearly $2 million package in land and state grants, which Sprint rejected in favor of a more lucrative deal from Sullivan County. According to an Associated Press report from November 25, 2011, Sprint qualified for $4,500 in tax credits per employee in Sullivan County—totaling $2.7 million for 600 employees—plus a complete abatement of local property taxes. Richard Venable, CEO of NETWORKS Sullivan Partnership, estimated Sprint’s investment in the new facility at between $4 million and $6 million.
NETWORKS Sullivan Partnership, which promoted the deal, has not disclosed full details on its website (www.networkstn.com), as noted in a *Bristol Herald Courier* report from November 16, 2011. This lack of transparency raises questions about governance practices in the region.
Bristol, Virginia, officials expressed frustration over the lost revenue from construction, with one stating:
Our philosophy is we don’t give public property away without something in exchange. We think our performance requirements were modest because we knew they wanted to construct a $10 million facility, and we required them to hire 25 additional jobs over three years. And we understand they’re planning to add about 300 jobs.
However, these requirements were undermined by Sullivan County’s more attractive offer, which likely included larger incentives. Sprint justified the move by claiming much of their workforce resided in Tennessee—a questionable rationale given the proximity of the two locations.
The Sprint-Agero saga exemplifies a broader issue in the region: the competition between low-wage communities to attract businesses at taxpayer expense. Sullivan County, classified as economically depressed, has one of the most anti-labor business climates in the region, a factor that likely appealed to Sprint. Yet, this environment offers little stability for workers. Call centers, as an industry, are notoriously unstable, with high turnover rates and median wages below the national average ($32,300 in 2016, per the Bureau of Labor Statistics).
Tennessee ranks poorly in social outcomes, with high poverty rates and low education metrics exacerbating economic challenges. The promise of “new jobs” often masks the reality of job shuffling, leaving communities like Bristol and Sullivan County no better off. For a deeper look at the region’s economic struggles, see College Graduates Flipping Burgers in Tri-Cities.
