Normally, when companies chop 33% of their workforce, they are usually falling apart. You would expect this from companies like bed bath and beyond, macys etc... all of which are getting destroyed by amazon. Verizon is in fairly good shape, good cash flow, solid products, yet their dismantling their 33% of their workforce, makes no @#$@# sense. Has their ever been a company in similar shape doing such a thing and did it work?
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Oh look the stock is going back down the $hitter again. Yeah, so much for that...
2unh, when I say pension I mean retirement benefits which included medical. Yes, the medical hurts.
@ 2hgo the medical hurts way more than the pension. You could have easily made the pension up with your 401k. no getting around these medical costs though.
I think what Verizon failed to realize is that by freezing the pensions in 2006 they forced employees to work much longer. Really made no sense because as I used to do my pension calculations, I would have been gone at 53 with 30 years. But, since I could not do that, here I am 8 years later and they have paid me over 850,000, vacation, medical, I use resources to do my job so in that time frame, I have probably cost them more than what would have been in my pension. And, I am still not sure I can go because of the medical.
Use your head. No one is laying off one third of the workforce. Packages were offered to 44,000 with the knowledge that only a fraction of them would accept them. Let's say one quarter. So that is 11,000 layoffs. And many of those 11,000 will be replaced in short order with lower-cost workers.
Example: “...yet their dismantling of their car will result in a need for an alternative mode of transport.”
To carry that analogy forward: VW Beetle becomes a Manx Buggy. We don't need the extra weight and to cross the new terrain things need to change. Think purpose built not sentiment.
@2vdx, perhaps the OP is quite literate, and it’s you who fail to understand what’s being conveyed.
Example: “...yet their dismantling of their car will result in a need for an alternative mode of transport.”
Seems OP might have been grammatically correct, in that instance, but OP’s writing’s otherwise choppy, and there’s a superflous comma included.
-1qck hit it on the head. Truth may not be popular, but that's the way it goes.
Grammar check for OP:
you wrote "yet their dismantling their 33% of their workforce, makes no @#$@# sense. Has their ever been a company in similar shape doing such a thing and did it work?"
it should be "yet they're dismantling their 33% of their workforce, makes no @#$@# sense. Has there ever been a company in similar shape doing such a thing and did it work?"
No wonder they want your illiterate a-- out of there (or they're or their)
"Let's not kid ourselves. It won't be the dead weight that takes the offer. It will be the best people that can land good jobs quickly and bank the money."
BINGO.
Also, wish I held more!
Agreed @1xac. We’re back to what we we worth in 1999.
This extraordinary tear is very exciting.
@1qaq Another record day for VZ stock even though the rest of the market tanked. Up another 20 cents from yesterday's record closing price.
Verizon is not the first company to reduce it's workforce and definitely not the last, other companies have been laying off for years but you never noticed because you were safe inside VZ's circle of protection. Now that it's happening at VZ everyone "who don't keep up with industry news" is shocked, the industry is changing, telecom companies go through this all the time. It's just hitting home now.
No I don't think it is a big deal. By the way, it is down today.
I think the $110 billion in debt Verizon carries is a big deal. Especially when they keep raising the dividend and are about to embark on a CAPEX heavy 5g buildout.
But hey, the stock is at $57 a share. Wowowowow...
@1lbi The stock hit an 18 YEAR HIGH yesterday and you think that's no big deal?
@1man - Yeah one day of stock gains means everything mo--n.
It’s time to get rid of the landline business and the employee slugs along with it.
"No one has it easy. Everyone is struggling to survive."
The top 1% control more wealth in the US, than the bottom 90%. Obviously not "everybody" is struggling to survive.
1hqz you must have missed the stock price today. VZ is killing it and your doom and gloom is meaningless.
Verizon is doing good? Thats news to me. Wall Street analysts set mediocre EPS estimates and Verizon topped them. Whoopdie doo! Lets not forget the piles of debt this stuipid mega corportation carries.
https://www.macrotrends.net/stocks/charts/VZ/verizon/debt-equity-ratio
Lets also not forget the shady accounting they do to spin financed phones as part of ARPU. This place is MCI Worldcom, Tyco and Enron rolled into one.
Technology is changing and automation and outsourcing is the trend. Verizon has way too many employees that it no longer needs. Get over it and move on.
https://www.computerworld.com/article/2572933/it-careers/verizon-offers-buyout-to-74-000-management-workers.html
Yes. It's called capitalism. Stop with all the drama.
Let's not kid ourselves. It won't be the dead weight that takes the offer. It will be the best people that can land good jobs quickly and bank the money.
Well around a decade ago a company by the same name “layed off” no they offered the package to nearly twice as many people and here we are today.
HP has.. they've got a named process for what Hans is likely to come away with those that survive the 300 meetings, The Clean Room. Surviving leaders get shuffled, and handed someone's deck of strangers to chop, and shuffle, play and discard. Less emotions when playing with strangers. HP split into two companies and is doing better. It'll all better soon, stop struggling.
For as bloated as the company is we could all name five dead weights in our group that could easily be done away with.
If a company is well run they will never have a 33% employment surplus. Makes you wonder how did they get that bloated ? For how long did they know ? Did this just happen? why wasn't it addressed years ago. Could have been saving money for years. Poorly run company.
Yes, just look at the history of all telecom companies. Many have been having layoffs every month in most USA location who still support 4G (or older technology). The fact of life is, companies will go wherever there is cheap labor from manufacturing to software coding to chip design. First it was Mexico, then China/India/Poland/Russia, then Philippines, and now Bangladesh and very soon (if not already) Africa. Even though USA economy as far as jobs are concerned looks good, doesn't mean that there are enough jobs in the engineering sector for the pay you get right now. There are plenty of jobs under $100K for younger adults for a few years. You can forget about making over $100K and be in your 50's and be able to stay with the same company for another 15 years until retirement with pension. Those days are gone. The jobs that are available are for people who can work 24/7 which includes weekends, holidays, with all types of international folks. If you want the job, you better learn to adjust and make more friends with foreigners then enemies. Let's face it, it doesn't look that great for our kids either. China/Japan/India have some of the best engineering students and they understand what it means to struggle for a dollar a day so they can feed not only themselves but their entire family. In some of these countries, the entire family depends on one or two earners. No one has it easy. Everyone is struggling to survive. At least we had it good for the past 20+ years. Next year, starting Jan 2019, many companies will have layoffs because of the volatile stock market. Just look at the past 14 days. And look at the posts on this site - layoffs at Sears, Intel, Qualcomm, Cisco, AIG, ADP, Union Pacific, Centrica, Refinitiv, IBM, Sam's Club, State Farm Insurance, Nokia, Verizon, GE, etc. and the list goes on and on. Companies are not able to make profit, so layoffs are inevitable. Every corp wants to survive and they will do what it takes to survive.
Verizon is falling apart . Lots of dead weight and probably a huge part of their company that they don’t even want anymore . Now put your big boy pants on and deal with it .