By: Paul Taylor and Alan Rappeport
Source: ft.com
Verizon the second-largest US telecoms group, is to cut a further 8,000 jobs in response to the recession and the loss of fixed-line business.
Discussing Verizon’s second-quarter results, which included a 7.2 per cent fall in net income to $3.2bn, Ronald Lataille, chief financial officer, said: “Clearly the broader economic issues are affecting the business.
“Although we are taking steps to mitigate the negative impacts of the economy in the short term, we also need to more significantly reduce the wireline cost structure over the next 12 to 18 months.”
Operating revenues in Verizon’s global enterprise business segment, which mainly serves big companies, fell 6.7 per cent to $3.7bn as customers reacted to the downturn. Wholesale revenues fell 7.5 per cent to $2.4bn.
I am glad for the layoffs. I think the company is moving in the right direction with layoffs. I am not affected since taking the union hall job.