Thread regarding Verizon Communications Inc. layoffs

Exceptionally bad/arrogant/inept management

Face it, these guys fell asleep at the wheel, believing in their own hype and thinking the wireless pay-by-the-minute bucket would keep pouring gravy over everything. Now they're doing what produces short-term "results" and AGAIN ignoring the long-term prognosis regarding company sustainability.

Apple: We have an idea for a product, interested?. Nah, we're the Blackberry kings, nobody wants that toy. And the race for second place in the smartphone war was on.

The reasoning behind the Vodaphone buyout? To support cash flow to cover wireline operations? Ha! If that was the casae, then why are they selling off wireline assets anytime a buyer can be found? No, it was purely an ego trip so somebody could say THEY were the ones who pulled off the deal. $60B is a pretty big turd on your balance sheet, especially in the midst of a pricing war. Smart.

Now they're crying about all the debt service and how these layoffs are crucial to sustaining shareholder value. Just what IS "shareholder value"? Basically means the share price when the options on their compensation packages mature. Real investors are looking for long-term sustainability and a viable appreciation in value over a period longer than the next two quarters.

The price of poor decisions by management is being paid by the working stiffs. Any C-level exec that thinks regular rounds of layoffs are a component of company success has failed as a steward of the entity and as a positive contributor to the economy. Especially after the stupendously bad choices madeover the last 7-8 years.

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| 404 views | | 3 replies (last October 15, 2015) | Reply
Post ID: @OP+DYFjmmW

3 replies (most recent on top)

Vodaphone was taking 50% of all profits for their initial investment, VZ wanted all of it, that's why they finally bit the bullet, pulled the trigger and bought them out. Initially they had a lot of revenue streams they redirected to the wireless side, allowing them to realize 100% of the profits. Now they're having garage sales to buy down their debt so their operating capital costs are back in line.

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Post ID: @SEu+DYFjmmW

Yeah love how they hyped up the Vodafone buyout like it was the greatest thing to ever happen and that the debt was no big deal with all the added income yet 6 months later all the people that put then in the position to even afford that buyout get to pay for it with their jobs. How about we get rid of the people pushing failed ideas like go90 and 'destination' stores first?

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Post ID: @1yv+DYFjmmW

Great post. After all, the vz mgmt has come up with 2 thinks to increase share holder value (and their bonus). 1. Sell off low yield assets 2. Downsize the staff. Selling assets will not work because they made wireless business as bad as the rest of the business units. If they are selling of bad assets then they need to include wireless as well in the list.

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Post ID: @qie+DYFjmmW

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