(Updated, 10:45 a.m.)
NEW YORK – Verizon Communications Inc. said Tuesday it plans to cut more than 10,000 workers from its landline division this year as customers continue to get rid of home telephone service.
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The telecom giant made the disclosure the same day it reported a loss in the final quarter of last year as the company spent $3 billion on severance and other costs that stemmed from its decision to lay off thousands of workers last year.
Verizon posted a net loss of $653 million, or 23 cents a share, in the three months ended Dec. 31, compared with a profit of $1.24 billion, or 43 cents a share, a year earlier. Revenue rose 10 percent to $27.1 billion.
Excluding one-time charges, Verizon said it posted a profit of 54 cents a share. The company’s sales and earnings missed analysts’ estimates, Bloomberg News reported.
Although Verizon Wireless, the company’s mobile-phone joint venture with Vodafone Group Plc, gained 2.2 million new subscribers during the quarter, that was offset by the continued loss of landline customers and weakness in its business division.
In a conference call with investors Tuesday, Verizon Chief Financial Officer John Killian, a Rhode Island native, said the business environment continued to be more difficult than expected, according to Dow Jones Newswires.
“We were somewhat surprised by the continued level of economic pressures impacting our enterprise and wholesale markets,” he said, adding that Verizon still faces a “very challenging environment.”
Verizon cut 13,000 jobs last year, or about 9 percent of its work force, and Killian said the company expects to eliminate a similar number of employees this year, Dow Jones reported.
