Feeds

Verizon to cut 8,000 (more) jobs

Less profits, more smartphones

Top 5 reasons to deploy VMware with Tegile

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." ®

Internet Security Threat Report 2014

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.