Sprint Nextel Corp. on Friday revealed its intention to close eight percent of its retail stores due to high competition and the loss of about 683,000 postpaid customers to its rivals.

The firm said it will reduce its workforce by 6.7 percent.

Nextel lost 109,000 subscribers and 683,000 postpaid customers in its fourth quarter.

Shares of Nextel fell 25 percent to $8.52 in recent trades.

Most of Nextel's postpaid customers joined AT&T or Verizon Wireless, a joint venture owned by Verizon Communications Inc and Vodafone Group plc.

Nextel responded to the loss of subscribers by saying it would cut 4,000 jobs from its workforce of 60,000 and close 125 of its 1,400 company owned retail stores.

Last year, Nextel had 53.8 million wireless customers, while AT&T and Verizon wireless had 63.7 million.

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