Tuesday, January 26, 2010
Verizon to Cut 13,000 Jobs
With a fourth quarter loss, Verizon plans to cut 13,000 jobs in 2010. Even after cutting 17,000 jobs last year, there was still a net loss of $653 million. Sales rose from $24.6 billion to $27.1 billion, but below the analyst estimates of $27.3 billion. Verizon’s fixed-line revenue plunged 3.9% from $11.9 billion last year to $11.5 billion this year. This is not surprising news considering today’s economy and all the competition amongst cell phone companies.
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2 comments:
It is almost hard to see how they are surviving with the huge competition, marketing expenses, and fixed costs they are currently incurring, not to mention the tough economic conditions. With Verizon's formidable opponent, At&t, they are both driving each other out of the market with the pricing and maps battles, leaving T-Mobile, Sprint and others to focus on different marketing schemes. It is not a surprise that they are doing something drastic to keep up or get ahead, but maybe with their leaner, more efficient work force they will be able to hold on to more revenues and make a profit.
I think that the key to this is the scaled-down work force. The idea of Verizon's workforce being smaller and more efficient is very similar to the article "Viva la difference!" that we read about France. The article states that, "One reason why French workers are more productive per hour than Americans is that firms employ so
few of them. Many make widespread use of rotating interns and temps. One fast-food boss says that he staffs the same restaurants in France with two-thirds of the numbers hired in Britain." It is interesting to see how Verizon is echoing this French policy in tough economic times.
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