Verizon sets charges of $3.7 bln after job cuts (21,260 employees)

[UpInArms]

http://cbs.marketwatch.com/tools/quotes/newsarticle.asp?siteid=mktw&sid=182435&guid=%7B1504B77C%2DA627%2D4985%2D83B9%2D542B83D81D30%7D

PHILADELPHIA, Dec 9 (Reuters) - Verizon Communications Inc. (VZ), the largest U.S. telephone company, said on Tuesday it would record $3.7 billion in charges, primarily to cover costs of one of the biggest workforce reductions of any U.S. company this year.

In the fourth quarter, the company will record a charge of $2.8 billion, or 99 cents a share, to cover severance costs in an early retirement incentive plan accepted by about 10 percent of its work force, or 21,260 employees.

Verizon's work force reduction was one of several cost-cutting measures launched by telecommunications companies, struggling with slim demand and increased competition.

...more...

I guess that makes it 30,000+ job cuts that were announced today

[alfredo]

1. which means their service will

suck even more. I bet when or if the economy improves the rehires will be in India or out 3rd world nations.

[Hobarticus]

2. George, can you hear me now?

Explain away another 30k jobs lost, jackass.

[ConcernedCanuk]

3. but..But... BUT - what about all those Wal-Mart jobs ?

. . sure, the pay is about half of a telemarketer, but it's a JOB !

. . we don't wanna have enuf money to BUY a home

. . just give us enuf to rent some piece of sh_t

We want our rich to get RICHER - yes ??

. . . .

[Hobarticus]

4. Is Canada hiring?

[DUreader]

5. What is the other Billion for?

[On the Road]

7. Good Catch, DUreader

on the question of what the other billion is for. Here's the answer from the article:

"The company also will record a charge in the range of $700 million to $900 million related to pension settlements. This charge primarily represents the immediate recognition of deferred pension-plan investment results."

Looks like the pension fund ran short because of bad investmets and had to be replenished with company money. (Am I reading that right?) Verizon thus decided to take a big bath rather than incurring two extraordinary items in different quarters.

[On the Road]

6. As a Verizon Employee, Let Me Just Say That

the reason the charge is so big is that it was a really good offer -- people who qualified usually got two years' salary and retained health care and other benefits after retirement. Verizon needed to reduce staff, and it did so generously on a voluntary basis.

As far as I know, the reductions are all in the local phone company, not in wireless. Of the 21,000 who took the offer, 16,000 were management (about 1/4 of all management), and only 5,000 nonmanagement. Verizon is steadily losing lines to competitors, and will not need as many workers to maintain the same level of service.

A lot of companies behave irresponsibly toward employees. It should just be recognized when a large company treats its workers fairly.

[JCMach1]

8. Well said...

[uhhuh]

9. Agreed

I have to say that there is no reduction in staff on the wireless end. They have added call centers in two new regions of the country and have hired a lot of staff in the retail stores.
All new employees are hired at full time (real full time, 40 hr weeks) and get get full bennies after 90 days. I haven't been screwed by them yet, even though I find it pathological how bad people seem to think they need cell phones.

[Nile]

11. I just dropped Verizon last month...

because of lack of retail stores in my area. They used to have several of them right in the surronding area but closed all that were close by. I do not live in a real small town either, population about 35,000.

[kysrsoze]

10. I wish another similar company would offer that. I'd leave in a second.

Darn. Nothing so far.

[mbperrin]

12. WOO-HOO! Look at that Bush* job machine

go!