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Verizon Q4 09: Wireline losses drive more job cuts
Verizon's wireline business struggles continued to rear their ugly head in Q4 09. While wireless once again continued to thrive with the addition of 2.2 million mobile subscribers, Verizon's wireline revenues dropped 3.9 percent to $11.5 billion during the quarter.
For Q4 09, Verizon reported a net loss of $653 million versus $1.24 billion in Q4 08. A big contributor to that loss was the $3 billion in charges it had to incur from last year's layoffs. However, overall revenue increased 9.9 percent to $26.1 billion.
Although landline losses of 460,000 subscribers were slightly down from last year, the bigger concern here is that Verizon saw its broadband access revenue and subscriber numbers drop during Q4 09. During the quarter, Verizon added 153,000 FiOS TV subscribers, missing analyst expectations of 200,000. For the year, Verizon failed to meet its 1 million video subscriber addition goal as it only added 943,000 new FiOS TV customers. At the same time, Verizon lost 107,000 DSL subscribers in the quarter, versus only 68,000 in Q4 08.
These factors have driven Verizon to announce that it would cut even more staff from its wireline employee roster. Verizon said it plans to lay off more than 13,000 employees in 2010. In 2009, Verizon let 13,000 employees go, ending the year with 117,000 employees.
Not everything was doom and gloom on the wireline side, however. One diamond in the wireline rough was the business services segment, which generated $1.6 billion in revenue, a 6 percent increase over Q4 08. What contributed to the business growth was the continued adoption of IP-based services, managed services, Ethernet and security. IP service revenue alone increased 8.6 percent year over year.
For more:
- see the earnings release here
- xChange has this article
Related articles
Verizon Q3 '09: FiOS leads the wireline way
Rumor Mill: Verizon layoffs at end of Q1
Verizon goes for the 'quad play' jugular
Forget landline voice: I want data, video and wireless
Comments
Posted by Anonymous | February 2, 2010 - 11:33pm
we techs are meeting at dslreports.com/fiostechs, search for the layoffs tab, once yu are approved by a mod, we can discuss between only techs
Posted by Anonymous | January 28, 2010 - 9:40pm
what garage do you work at? I am a splicer at the plant st. garage in wilmington,de.
Posted by information | January 28, 2010 - 10:30am
Verizon is expecting litigation that could cost them billions in related losses. This litigation is because Verizon has knowingly and purposely allowed now tens, even hundreds of thousands of current and former employees to work with, use and be exposed to carbonless copy paper they knew could cause serious adverse health effects, disabilities, cancer and death. If you have worked for Verizon, Bell Atlantic, former Bells no later than 1990, possibly ealy 80's, may be able to file claims against Verizon and others that could amount to a large settlement.
I will be glad to provide additional information, especially for any being laid off. I would suspect that Verizon is trying all ways possible to prepare for the expected losses from such litigation and cut expenses. Are those being laid off part of this cost cutting ?
Posted by My_last_ day_ is_ jan_ 30th | January 27, 2010 - 7:13pm
verizon is a scum bag of a company, they are telling people that we are not getting laid off, rather we are self terminating ourselves.of the 480 splicers,most did not qualify for one of the 40 consultant jobs because of lack of sales exp. and they would have the nerve to challenge peoples unemployment..as for the union who sold me and everyother brother after 2003 by compromising their integrity,...techs need to make sure they take the time n do their job properly n safely becaus some of us cut corners for the company and work their brothers out of a job..and all techs helping doing the managers work need to pick up ya tools..
Posted by It_was_all_planned | January 27, 2010 - 6:30pm
Little known facts:(1.)VZ encouraged subscribers to drop their wireline http://www.dslreports.com/shownews/Verizon-Cut-Your-Landline-To-Save-Money-103232 (2.)three billion in writeoffs for laying off 8,000 in 2009,that's $375,000 per employee,the hourly workers I know that got laid off received $1,100 per year of service,each averaging about $3,300 total for 3 years of service plus VZ fought their unemployment claim.(3.) The CWA Headquarters in Washington,DC did nothing for them,no protests,nothing but silence until it was too late.
Posted by Anony | January 27, 2010 - 5:22pm
What happened to all the CWA guys telling us what a great place Vz was, how they took care of their employees and wireline losses were no big deal because "you'll always need wires in there somewhere"?
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