“While the New York telecommunications giant’s wireless arm remained resilient in the face of lower consumer spending, its legacy wireline segment wasn’t so fortunate. Verizon said there haven’t been any indications of a pickup in spending on the business side. In addition, the number of new FiOS customers disappointed Wall Street,” Cheng reports.
“‘The economy won’t help us as much as we thought,’ Chairman and Chief Executive Ivan Seidenberg said, adding that he doesn’t see a significant improvement until the end of the year. As a result, the company projects another round of layoffs, similar in size to last year,” Cheng reports.
“The company reported a loss of $653 million, or 23 cents a share, compared with a year-earlier profit of $1.23 billion, or 43 cents. Excluding one-time items, among them the costs from cutting about 8,000 jobs, earnings fell to 54 cents a share,” Cheng reports. “Revenue jumped 9.9% to $27.09 billion. Both profits and revenue disappointed analysts, who were already bracing for weaker results.”
“The wireless business, however, remained strong thanks to Verizon Wireless’s latest attempt to counter the popularity of AT&T Inc. and Apple Inc.’s iPhone. Motorola Inc.’s Droid, powered by Google Inc.’s Android software, saw moderate success with its holiday launch,” Cheng reports.
“To offset the slowing revenue, the company maintained its commitment to cutting costs,” Cheng reports. “It expects to cut its work force of 117,000 by another 13,000, similar to the amount of jobs it slashed last year.”
Full article here.
Now we know why Verizon has gotten so aggressive with their ads. Losing $653 million will be a good motivator. What could help?? Hmmmm, could it be the iPhone?
Dumping a boatload of money to promote Motorola and Google’s Droid didn’t help?
Just what I want.. Sign a contract with a service provider who is laying off workers and cutting costs.. That’s encouraging..
I think I’ll stick with ATnt.
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AT&T;could hire some of the people to improve its network.
@ MikeK
+1
It couldn’t have happened to a bigger bunch of assholes. While I feel sorry for those who lost their jobs, they should feel anger toward the arrogant executive management of Verizon. Apple offered Verizon Chairman and Chief Executive Ivan Seidenberg the first chance at the iPhone, and he promptly told Steve Jobs to pound sand. Despite the smugness of their mean-spirited ad campaign (probably dreamed up by a creative team that normally work on political ad campaigns), the truth is that the strategic mistake made by Verizon in refusing Apple’s offer has clearly hurt them.
I hope it costs Mr. Seidenberg his job. THAT would be sweet revenge.
Apple’s cash is worth more than all of Dell. But instead of buying Dell, liquidating it, and giving Apple’s shareholders the money, it would be better just to give Apple shareholders the money.
Oops. Wrong tab. Sorry for irrelevant comment above.
Of course, if they made FIOS available, maybe we’d buy it. Instead they only offer DSL in my area, which cable beats easily.
Losers.
While I will stick with AT&T;for my wireless service (been with the company / legacy companies since 2003), my wife and I just signed up for the FIOS Television Bundle (Internet, Telephone, and Television.) I give Verizon 3 A’s for their quality service. OUTSTANDING television picture quality. EXCELLENT Video on Demand – able to watch both Movies (paid) and several television shows (free) at our choosing. The ability to watch several (not all) of our favorite TV shows when we want without signing up for a DVR service is a BIG plus. Their VOD service is almost as good as a stand-alone DVR and saves $14 a month. Internet service (25 down and 15 up) is rock solid and quick. Phone service is of course reliable. All in all, much better quality and value than what our local cable company (Time Warner) offers. Turbo boost? – please… Although Time Warner does have better commercials.
Peace.
Does Verizon have a map that shows where they lost all that money?
Well, I guess Verizon’s advertisments will have fewer people in the background.
Can you imagine the management: I said you are laid off! Can you hear me now? I said, hello? Can you hear me now? You are laid off! Hello?
This is probably why we keep hearing the rumors on iPhone coming to Verizon. I don’t think it will happen due to Verizon’s crappy CDMA network.
Sprint? T-Mobile? Maybe. But I think AT&T;will have it at least until summer…..
In an unrelated story….
Verizon preps for ‘big day’
Verizon Wireless has told its store managers that Wednesday will be a “big day.”
Reading between the lines;
YOUR FIRED
Cheers
Your what is fired, Shadow?
“the number of new FiOS customers disappointed Wall Street”
Well, duh!! Verizon has been teasing my town for 2 years now claiming they were going to bring FIOS here “any month now”.
What a bunch of shit heads. They are getting everything they deserve.
Now we know why all these “anal-ysts” have been whoring for Verizon over the last week – “Verizon iPhone! Verizon Tablet! Wednesday!”
Umm, right. In Verizon’s wettest of wet dreams.
Pure desperation.
If you had the ability to offer a web/TV/VOIP service to combat cable, which was basically identical to Cable service in all aspects except a little higher download speed, how would to advertise it? How would you entice people to make the switch?
In our area, FIOS is priced identically to cable, all offerings are bundled up as bad as Comcast’s crap, and the switching cost doesn’t offset whatever non-guaranteed speed boost one might receive. No wonder Verizon isn’t setting the world on fire with FIOS. All they’d need to do is completely unbundle their offerings OR provide a coupon for free switchover and they’d displace cable in every market. But no, they don’t want to man up for the capacity. They’d rather fire their telecom workers.
“To offset the slowing revenue, [Verizon] maintained its commitment to cutting costs,” Cheng reports. “It expects to cut its work force of 117,000 by another 13,000, similar to the amount of jobs it slashed last year.”
To further escalate rapidly growing annual revenues and profits, Apple maintained its commitment to technical innovation and the development of best-of-kind hardware and software products that combine seamless lifestyle integration, ease of use, and reliability.
What are they talking about. FIOS isn’t even available in most of NY.
Atnt had the same problem. Their wireless division was going strong by land line business going downhill fast.
If they would make FiOS available, maybe they would have more subscribers…
But.. but.. they have better coverage!!!!
Just this month I looked at their FiOS offering but Comcast gave me much better price and overall value so I switched from Verizon phone+DSL to Comcast. Sorry, “V”. Plus iPhone with AT&T;. Which makes me Verizon-free and I don’t feel bad about it. There is no emotional connection with the carrier, be it Verizon, Comcast or ATT – after all they are just dumb pipes, aren’t they?
@troy:
LOL! Yeah, and their map is more filled in, too.
Ooops!
Peace.
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Olmecmystic