Verizon Wireless said the undisclosed number of job cuts are part of move from 20 offices to six
Verizon Communications is reportedly set to cut an undisclosed number of jobs in its wireless division as part of a regional restructuring program.
According to a Bloomberg Business report, a Verizon spokesman confirmed Verizon Wireless plans to consolidate its current 20 regional offices to six. The spokesman said the move will result in an unspecified number of job cuts, though sales and store employees were said to not be part of the workforce reduction.
Verizon recently reported slower growth at its wireless division, which included a 20% year-over-year drop in direct net connection additions. However, due to a larger overall customer base, the carrier posted a 5.4% increase in operating revenues to $23 billion for the quarter.
While its wireless and fiber-based FiOS business were cited as company drivers, the telecom giant’s wireline business continues to sag as customers move away from traditional telephone service. Verizon recently completed the $10.5 billion sale of its wireline holdings in California, Texas and Florida to Frontier Communications in a deal that also included the transfer of approximately 11,000 Verizon employees to Frontier.
Verizon Communications counts more than 177,000 total employees across its operations, and has been in a bargaining stalemate with workers represented by the Communications Workers of America. Those CWA members have been working without a contract since Aug. 1.
Verizon’s board of directors recently approved a 2.7% dividend increase for shareholders, which was the ninth consecutive year an increase was approved. The company also recently closed on the $4.4 billion acquisition of AOL in a move to bolster its digital content delivery and marketing efforts.
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