Jones Lang LaSalle
Verizon is planning 'significant' job cuts
Exec: Not likely to buy Vodafone share of wireless unit soon
BY J. KYLE FOSTER
BLOOMBERG NEWS
Verizon Communications plans "significant" job cuts in its shrinking local-phone business to put more money into faster-growing areas, chief financial officer Doreen Toben said.
The No. 2 U.S. phone-service company also doesn't plan to buy Vodafone Group's 45 percent stake in Bedminster-based Verizon Wireless soon, Toben said Tuesday at a conference in Washington.
Chief executive Ivan Seidenberg has said he wants full ownership of wireless, Verizon's fastest-growing business, and that it's up to Vodafone to start talks.
New York-based Verizon will make job cuts in the local unit as it focuses on more profitable businesses, Toben said, without being specific.
"Significant is obviously is going to be in the thousands," said Daniela Spassova, an analyst at Des Moines, Iowa-based Principal Global Investors, which has about $158 billion in assets, including Verizon debt.
Verizon shares rose 8 cents to close at $30.87 on Tuesday. The shares have gained 2.5 percent this year. Vodafone fell 1.25 pence to 116.75 pence in London.
Verizon won't give details about the cuts, spokesman Peter Thonis said.
Verizon had 252,311 employees at the end of the first quarter, with about 140,000 in the local-phone business, spokesman Robert Varettoni said. The company had 217,000 employees at the end of 2005 before buying MCI.
"You will see reductions on the wire-line side that are significant as we go through the next 18 months," Toben said.
Verizon lost 843,000 local lines in the first quarter to 48 million and has seen the total decline by 24 percent from a peak of 63 million at the end of 2000, when it employed 260,000 people.
The local business accounted for 37 percent of Verizon's first-quarter sales of $22.7 billion.
Verizon is planning 'significant' job cuts
Exec: Not likely to buy Vodafone share of wireless unit soon
BY J. KYLE FOSTER
BLOOMBERG NEWS
Verizon Communications plans "significant" job cuts in its shrinking local-phone business to put more money into faster-growing areas, chief financial officer Doreen Toben said.
The No. 2 U.S. phone-service company also doesn't plan to buy Vodafone Group's 45 percent stake in Bedminster-based Verizon Wireless soon, Toben said Tuesday at a conference in Washington.
Chief executive Ivan Seidenberg has said he wants full ownership of wireless, Verizon's fastest-growing business, and that it's up to Vodafone to start talks.
New York-based Verizon will make job cuts in the local unit as it focuses on more profitable businesses, Toben said, without being specific.
"Significant is obviously is going to be in the thousands," said Daniela Spassova, an analyst at Des Moines, Iowa-based Principal Global Investors, which has about $158 billion in assets, including Verizon debt.
Verizon shares rose 8 cents to close at $30.87 on Tuesday. The shares have gained 2.5 percent this year. Vodafone fell 1.25 pence to 116.75 pence in London.
Verizon won't give details about the cuts, spokesman Peter Thonis said.
Verizon had 252,311 employees at the end of the first quarter, with about 140,000 in the local-phone business, spokesman Robert Varettoni said. The company had 217,000 employees at the end of 2005 before buying MCI.
"You will see reductions on the wire-line side that are significant as we go through the next 18 months," Toben said.
Verizon lost 843,000 local lines in the first quarter to 48 million and has seen the total decline by 24 percent from a peak of 63 million at the end of 2000, when it employed 260,000 people.
The local business accounted for 37 percent of Verizon's first-quarter sales of $22.7 billion.
posted by Jones Lang LaSalle NJ News Blog at 3:10 PM
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