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Verizon Plans 8,000 Job Cuts to Fight Costs

Article Comments  35  

Jul 27, 2009, 9:34 AM   by Eric M. Zeman
updated Jul 27, 2009, 10:29 AM

Verizon Communications reported its quarterly earnings today. Though the company's wireless division netted 1.1 million new subscribers (bringing the total to 87.7 million) and total revenue jumped 11% to $26.86 billion, Verizon saw a large 21% drop in profits. The company has also been hit with surging pension costs and weakening demand for some of its wireless services. In response, the company plans to reduce its contractor and employee workforce by 8,000 during the second half of 2009. Verizon indicated that the staff reductions would focus on its wireline and not its wireless business.

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Big Poppa

Jul 28, 2009, 2:23 PM

All Alone?

So with these lay-offs, does this mean the Nerdy Verizon guy in the commercial won't be accompanied by all those Verizon employees and be all alone? 🤣
stevelvl

Jul 27, 2009, 10:10 AM

Union effort

Yet another company is being drug down by the additional costs of a unionized work force. In this case it is caused by the big tent philosophy of pension that unions force on its employer. I feel little sympathy for any union members laid off.
please learn your history, I'm am very anti union but you should tip your hat in ode to unions for the fact that not for them you wouldn't be getting those 2 weeks a year paid vacations, health benefits, your work environment wouldn't be as nice and c...
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AMEN! It's ironic the union is supposed to represent the "average joe" yet people that belong to unions make 2-3 times that of people with equal jobs and education. This is just more proof that unions HURT business.

If the Verizon union cared it...
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CellStudent

Jul 27, 2009, 10:15 AM

Attn Rich Brome: Just the facts, ma'am?

Now I'll be the first to admit I'm no insider to CFO dealings, but aren't Verizon WIRELESS and Verizon COMMUNICATIONS two totally different companies?

From everything I can find on Google News, the press conference you're reporting on is Verizon COMMUNICATIONS announcing layoffs, not Verizon Wireless.

There's no way a company growing at 1.1 million subscribers per quarter can cut 10% of their workforce.
Mr. Zeman,

Please update your article to reflect reality.

Thanks
Verizon Communications owns and operators Verizon Wireless in partnership with Vodafone. The wireless business is deeply entwined with Verizon Communications and plays a large role in the company's overall financial results.

Also, it appears as th...
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It doesn't matter

Verizon = sucks donkey balls
flip mode

Jul 27, 2009, 2:06 PM

Drop the prices...

People will go to where the prices are the cheapest...if verizon wants to make more money...make it easier for people to sign up and lower the MCR for plans and features, I know its a crazy idea but "some" people get tempted to sign up more. 🤣
They have to be able to keep the price high enough they can make a profit. Very few people realize the millions of dollars it take just to maintain a wire line network. That is not counting disasters or the customer service requirements. Landlines ar...
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If people went where prices were cheapest, why are att and verizon still adding customers while Sprint is losing them?

People want lower prices, but they don't want to give up anything to get those lower prices (which you always have to) so they st...
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ATnT Nokia

Jul 27, 2009, 2:05 PM

This is proof that the wireline markets are shrinking.

With cellular phones becoming ubiquitous, the wireline markets are suffering. You can almost get cellular service cheaper now than you can a landline. If you want a phone with caller ID, voicemail, 3-way calling etc. on a landline, you will be paying a lot more versus a cellular phone which includes all that for free.

Plus more and more Americans are ditching landlines for cellular phones, I being one of them.
stevelvl

Jul 27, 2009, 1:47 PM

LOL Rich you just gave all of VZW the scare of there life!

It appears you put the fear of God into a lot of people that they might get laid off. If I were you I would run it looks as if they are rounding up a lynch mob sharpening their pitchforks and lighting the torches.
Jayshmay

Jul 27, 2009, 9:48 AM

Something just doesn't seem right here. . .

Verizom is a company with a whopping 87.7m customers, they just spent a good chunk of change, how much was it like $26B or so buying Alltel, and they're laying off 8k workers.

Verizon seems to be a healthy company to me.
4G is the key.
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And most probably a great majority of the 8000 will be Alltel employees that VZW absorbed in the merger. If VZW wanted to control costs, they should not have bought Alltel. So yes, it doesn't make sense.
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Or shady if that.
sswarowsky

Jul 27, 2009, 10:31 AM

Please correct your Twitter announcement and this article!

This article is strictly to the Wireline portion of the company Verizon Communication NOT Verizon Wireless. PLEASE CORRECT YOUR ARTICLE AND RETWEET YOUR ANNOUNCEMENT!
Verizon Communications operates many business units such as landline telephone (business and residential), high speed internet (business and residential), TV, and wireless. Wireless unit is operated in cooperation with Vodafone. The internal structure...
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underoath427

Jul 27, 2009, 10:15 AM

Read the actual article before you post!

Common Phonescoop, you've always been a leader at reporting wireless news, NOT biased opinions (*ahem ahem* BGR/Engadget/Phonarena), and you're SO much better than this post. Not that this post is biased, but I'm tired of people saying Verizon Wireless is this or that when it's Verizon Communications they're talking about. The quote from the WSJ is this "Verizon Communications Inc. posted a 21% decline in its second-quarter profit as it suffered from a pullback in business spending, but was propped up by the continued strength of its wireless business."

Verizon COMMUNICATIONS posted a 21% decline in profit, NOT Verizon Wireless. It actually says it's being propped up by the continued strength its Verizon Wireless business. Though the titl...
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Verizon Communications operates many business units such as landline telephone (business and residential), high speed internet (business and residential), TV, and wireless. Wireless unit is operated in cooperation with Vodafone. The internal structure...
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