Cost-cutting at U.S. Verizon Communications Inc.’s wireline business failed to keep pace with falling revenues as the nation’s largest wireless carrier reported a 21 per cent drop in second-quarter profit and announced further job cuts.
The company said yesterday it will cut more than 8,000 employee and contractor jobs before the end of the year in the wireline business, speeding up its efforts to keep costs in line, according to chief financial officer John Killian.
In recent years, Verizon has balanced layoffs in wireline with hiring in wireless, but chief operating officer Denny Strigl said that would not be the case this time.
“We probably will not have large-scale hiring until we’re out of the recession,” Strigl said in an interview.
Verizon ended the quarter with 235,000 employees, up from 229,000 a year ago, despite already cutting 8,000 jobs during the year. Contractor jobs are not included in those totals.
The earnings announced yesterday narrowly beat Wall Street expectations, and Verizon said demand for cellphones and its new home TV service were holding up well in the recession.