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Verizon's wireline business takes another hit
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Despite seeing some positive growth in its consumer broadband and wireless segment during the second quarter, Verizon has confirmed that slow demand from business users is forcing the ILEC to reduce its wireline workforce by 8,000 employees. The operator reported that second quarter net income dropped 7 percent.
To date, Verizon has laid off 8,000 employees, and it says this latest round of 8,000 job cuts will come during the third quarter. Verizon's shares fell to 95 cents, or 3 percent, to $30.55 in trading Monday.
During today's second-quarter earnings call, Chief Financial Officer John Killian said that the beleaguered economy's effect on the wireline business will "continue into the second half of the year." However, Killian added that the company will look for other areas where it can cut costs.
For more:
- Associated Press has this article
- Light Reading has this analysis
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Comments
Posted by Anonymous | September 19, 2009 - 2:37pm
It is time to separate the president of the board from the CEO. No oversight is no good. Shareholders revolt!
Posted by Anonymous | July 28, 2009 - 12:21pm
Management employees are being taken advantage of right now. We are told no information as to if we will be selected to go to either company and until that time, work demands are being placed upon them that are impossible to meet. They know they have us between a rock and a hard place. If we don't meet standards of performance (changed in middle of year and not officially covered w/employee) we are told we will be rif'd. Do you really think if standards of performance are meet that will be taken into consideration? NOT!!!
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