Feeds

Verizon to cut 8,000 (more) jobs

Less profits, more smartphones

The Essential Guide to IT Transformation

Verizon on Monday released news of job cuts, income slippage, and future smartphone plans.

A Verizon spokesperson told The Reg that the US's largest wireless service provider is planning to cut 8,000 employees and contractors during the remainder of this year, primarily in its landline division, as it switches its emphasis to more-profitable areas of its business.

Despite already cutting 8,000 landline jobs during the past year, Verizon ended the quarter with a higher number of total jobs than during the same period last year - 235,000, up from 229,000 - due to efforts to beef up its wireless division.

But said beefing won't continue, at least in the near term. Chief operating officer Denny Strigl is reported to have said: "We probably will not have large-scale hiring until we're out of the recession."

And when that will be, of course, is anyone's guess.

Compared with the same quarter last year, Verizon's net income sank 21 per cent, from $1.88bn in 2008 to $1.48bn in 2009. Although overall wireless revenue grew from $12.12bn to $15.48bn year-on-year, landline revenue sank from $12.11bn to $11.49bn.

The news wasn't all bad for Verizon's landline service, however. The company's fiber-optic consumer-level FiOS broadband subscribers saw a year-on-year jump of 56.1 per cent, adding 303,000 new customers during the quarter. FiOS customers now total 3.1 million.

That growth was spurred by accelerated adoption of FiOS TV. Verizon signed up 300,000 new FiOS TV customers during the quarter, an 82.1 year-on-year jump to a total of 2.5 million customers.

During the company's financial-results conference call with reporters and analysts, Strigl confirmed that Verizon would add the Palm Pre to its offerings early next year, as soon at that smartphone's exclusivity contract with Sprint expires.

Strigl also said that Verizon will offer a "refreshed" BlackBerry Storm later this year, a model that Research in Motion's chief executive, Jim Balsillie, confirmed in May was on the way.

Android fans won't be left out, either. Strigl said that an Android smartphone is also "on our roadmap," and that "you can expect to see a steady stream of attractive devices coming from Verizon Wireless." ®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.