• Verizon trims workforce to cut $10 billion in costs to fund US 5G buildouts



    Word on the street is that Verizon has sent voluntary severance packages last month to roughly 44,000 employees equaling more than 25% of its New York staff. Yikes! Part of the severance package will include 3 weeks paid salary for every year employed.

    Speaking to the Wall St. Journal a Verizon spokesman confirmed this and said its severance efforts were in part to save $10 billion and to help defray the cost of building its 5G network.

    Chief executive Hans Vestberg wrote in a memo sent to employees that: "The severance packages will give Verizon an opportunity to find more efficiencies in the size and scope of our V Team and help expedite the building of an innovative operating model for our future."

    Infosys, an Indian IT outsourcing company recently won a bid from Verizon to the tune of $1 billion. With that Verizon will outsource 30% of its IT staff to the Indian firm affecting 2,500 US employees. To rub salt into the wound of those affected Verizon will only pay out severance for these employees if they accept a job overseas and actually take it.

    Our hearts and condolences go out to all Verizon employees and their families who are affected by this.





    https://www.bizjournals.com/newyork/...workforce.html
    This article was originally published in forum thread: Verizon trims workforce to cut $10 billion in costs to fund US 5G buildouts started by @TheRealDanny View original post
    Comments 56 Comments
    1. Cjaiceman's Avatar
      Cjaiceman -
      Give them a tax cut they said, it'll create more jobs they said....

      And now we are here. /facepalm
    1. Jack Hagar's Avatar
      Jack Hagar -
      Well they could raise the price of plans by $10 a line. I'm sure everyone so concerned would voluntarily do that to save jobs.
    1. bobdevnul's Avatar
      bobdevnul -
      Quote Originally Posted by @TheRealDanny View Post
      ...Our hearts and condolences go out to all Verizon employees and their families who are affected by this.
      Thanks for the news. I feel their pain. I've been there too.

      However, it's business. Rightsizing the workforce is the right thing to do. The BOD has the fiduciary responsibility to maximize long-term profit for the benefit of the business owners, i.e., the stock owners, and not much else.
    1. eddiehaskell's Avatar
      eddiehaskell -
      Quote Originally Posted by Jack Hagar View Post
      Well they could raise the price of plans by $10 a line. I'm sure everyone so concerned would voluntarily do that to save jobs.
      No reason to defend verizon its clear they treat their employees just like they do their customers
    1. NotABiot's Avatar
      NotABiot -
      Unfortunately, it is not surprising. The demands of the CWA of course discourage Verizon from employing Americans, and when the CWA tries to force Verizon to shovel out thousands of extra dollars per year in unearned handouts to each worker, they start to become a welfare agency for the able-bodied, with the "wage" having nothing to do with the value of the work.
    1. NotABiot's Avatar
      NotABiot -
      Quote Originally Posted by bobdevnul View Post
      Thanks for the news. I feel their pain. I've been there too.

      However, it's business. Rightsizing the workforce is the right thing to do. The BOD has the fiduciary responsibility to maximize long-term profit for the benefit of the business owners, i.e., the stock owners, and not much else.
      That's not the entire picture: they have to satisfy both workers AND customers, or neither will choose to have anything to do with the company.
    1. Morphling27's Avatar
      Morphling27 -
      Quote Originally Posted by Jack Hagar View Post
      Well they could raise the price of plans by $10 a line. I'm sure everyone so concerned would voluntarily do that to save jobs.
      You are fully cognizant that VZW is one of the richest companies in the entire world? And that they literally serve 1 country, not the 200+ most business operate in, even say Walmart. ONE country. They offer a utility too, nothing even tangible you can hold or keep.

      VZW did this to just make more $$$ for the C-suite.

      Also, if they want to build a network out, take a loan maybe. Don't screw over your current operations. It isn't like they'd be hurt...

      Quote Originally Posted by bobdevnul View Post
      Thanks for the news. I feel their pain. I've been there too.

      However, it's business. Rightsizing the workforce is the right thing to do. The BOD has the fiduciary responsibility to maximize long-term profit for the benefit of the business owners, i.e., the stock owners, and not much else.

      The doublespeak is astounding. 'Rightsizing'. You mean firing your employees?

      Generally it's all about the bottom line of more money and that's their sole responsibility. Except they are a public utility and have regulations on them - and should have A LOT more.
    1. bobdevnul's Avatar
      bobdevnul -
      Quote Originally Posted by NotABiot View Post
      That's not the entire picture: they have to satisfy both workers AND customers, or neither will choose to have anything to do with the company.
      Yes, and that is all part of the business plan to maximize long-term profit. They also have to run the business in a manner that is in accordance with laws and regulations. It's all a part of a complex set of decisions that it takes to run a successful business. There is no table or algorithm that can give an exact answer to what is the best balance of the many factors.
    1. i0wnj00's Avatar
      i0wnj00 -
      Quote Originally Posted by @TheRealDanny View Post

      Speaking to the Wall St. Journal a Verizon spokesman confirmed this and said its severance efforts were in part to save $10 billion and to help defray the cost of building its 5G network.

      Chief executive Hans Vestberg wrote in a memo sent to employees that: "The severance packages will give Verizon an opportunity to find more efficiencies in the size and scope of our V Team and help expedite the building of an innovative operating model for our future."
      In microeconomics 101 this is called "opportunity cost".
      You can continue to spend $10 billion on labor or you can spend that elsewhere..in this case a 5G network OR you can continue to keep people employed and forgo a 5G network.

      Paying out a severance reduces long term expenses, than paying for a full time employee.
      Outsourcing also reduces expenses, you don't have to worry about the liabilities incurred by full time employee.

      Not really an innovative operating model for the future, just something you pick up by paying attention in microeconomics 101.
    1. computercrashed's Avatar
      computercrashed -
      Without the tax cut, they still would have done it. The tax cut didn't save any jobs.
    1. i0wnj00's Avatar
      i0wnj00 -
      Quote Originally Posted by Cjaiceman View Post
      Give them a tax cut they said, it'll create more jobs they said....
      Still better than the likes of SEARS/K_MART, Toys Я us or other brands in a precarious state.
      Look at the former, all they have been doing is shedding workers and the workers in the latter still haven't gotten their severance packages.
      No amount of tax cuts are going to save them.

      Also businesses don't benefit from tax cuts if their fixed costs are high or operate on razor thin margins.
    1. i0wnj00's Avatar
      i0wnj00 -
      Quote Originally Posted by Morphling27 View Post
      VZW did this to just make more $$$ for the C-suite.
      Which is completely the opposite of what they are trying to do because C-levels suck up a lot of money.
      If they are paying more to the C-levels, then that's less money for the 5G network.

      Also, if they want to build a network out, take a loan maybe. Don't screw over your current operations. It isn't like they'd be hurt...
      Loan = debt. A loan is money you don't own. Investors, creditors and Board of Directors do not want to see this on the sheets.
      Taking on loans calls into question your spending habits and/or management decisions. Investors and creditors fret about about your ability to payback those loans. Servicing a loan means you screw with current and future operations because you aren't investing that money back into the company or paying dividends.
    1. ilvla2's Avatar
      ilvla2 -
      Quote Originally Posted by NotABiot View Post
      Unfortunately, it is not surprising. The demands of the CWA of course discourage Verizon from employing Americans, and when the CWA tries to force Verizon to shovel out thousands of extra dollars per year in unearned handouts to each worker, they start to become a welfare agency for the able-bodied, with the "wage" having nothing to do with the value of the work.
      Thanks for the Anti-union propaganda.
    1. ilvla2's Avatar
      ilvla2 -
      RIP Business Ethics.
    1. ilvla2's Avatar
      ilvla2 -
      Quote Originally Posted by Jack Hagar View Post
      Well they could raise the price of plans by $10 a line. I'm sure everyone so concerned would voluntarily do that to save jobs.
      I would, for sure.
    1. eddiehaskell's Avatar
      eddiehaskell -
      Quote Originally Posted by ilvla2 View Post
      Thanks for the Anti-union propaganda.
      Unions are garbage nowadays. Not what they used to be
    1. NotABiot's Avatar
      NotABiot -
      Quote Originally Posted by ilvla2 View Post
      Thanks for the Anti-union propaganda.
      "Propaganda" here meaning facts that someone happens to disagree with.

      Sorry, in the struggle between workers and unions, I will always side with the workers. I live in the "rust belt" where the unions have done a pretty good job of forcing manufacturers to fire people and flee.

      As far as being "anti union" goes, I do support the right of individual workers to choose to join or not join a union. The same as the ACLU and NRA. If you want to call me "anti ACLU" or "anti NRA" for supporting this free choice here as well, so be it.

      Workers have it best with T-Mobile: they can choose to give the CWA as much, or as little money as they want. No one is forced to give the CWA money (which gets blown on political campaign contributions) against their will as a condition of working at T-Mobile. This means larger paychecks for the workers.
    1. NotABiot's Avatar
      NotABiot -
      Quote Originally Posted by i0wnj00 View Post
      Which is completely the opposite of what they are trying to do because C-levels suck up a lot of money.
      If they are paying more to the C-levels, then that's less money for the 5G network.



      Loan = debt. A loan is money you don't own. Investors, creditors and Board of Directors do not want to see this on the sheets.
      Taking on loans calls into question your spending habits and/or management decisions. Investors and creditors fret about about your ability to payback those loans. Servicing a loan means you screw with current and future operations because you aren't investing that money back into the company or paying dividends.
      Good points, I0. I am involved with a company that HATES taking out loans for these very reasons. They even hate renting. A company that OWNS the assets required for its business is on much firmer ground than one that is eye-ball deep in debt.
    1. DRC72's Avatar
      DRC72 -
      Quote Originally Posted by ilvla2 View Post
      Thanks for the Anti-union propaganda.
      CWA is a scam! Took my union dues but never saved my job. Unions had a time and place, but now itís all about them not the people.
    1. eddiehaskell's Avatar
      eddiehaskell -
      Quote Originally Posted by DRC72 View Post
      CWA is a scam! Took my union dues but never saved my job. Unions had a time and place, but now itís all about them not the people.
      I agree. Unions take peoples money but screw people over at the same time
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