Verizon posts a $653 million loss

By Phil Nickinson
last updated

While Verizon can boast the most retail customers of any U.S. carrier, they reported a $653 million loss for last years fourth quarter. With the announcement of the losses, Verizon also announce it plans to reduce it's work force by 13,000 employees during the course of the year.

Verizon did report a boost in their customer base by 2.2 million wireless subscribers but overall wireless revenue dipped 3.9% earning only $11.5 billion (that's with a B) during the quarter. Verizon did see an 31% increase in revenue generated by wireless data services.

The losses have been attributed to a decline in the land-lined customer base and the costs associated with employee lay-offs.

New York Times via BGR

Phil Nickinson
Phil Nickinson

Phil is the father of two beautiful girls and is the Dad behind Modern Dad. Before that he spent seven years at the helm of Android Central. Before that he spent a decade in a newsroom of a two-time Pulitzer Prize-finalist newspaper. Before that — well, we don't talk much about those days. Subscribe to the Modern Dad newsletter!

9 Comments
  • "The costs associated with employee layoffs?"
    I thought that was supposed to SAVE money :P
  • Severance packages, unemployment benefits, administrative costs, all increase when laying off a multitude of workers. etc. Short term this costs money but long-term it is (supposedly) going to save money.
  • I guess this is good news for people who think VZW is getting too rich and powerful. Personally, I don't care. If VZW dominating the mobile market means cheaper phones, plans, and better service, then I'm all for it. $653 million dollars is an insanely high amount of money, but it's funny how some companies are able to just shrug it off.
  • stupid verizon. sell by high quantity and high quality!! not by over hyped B.S that is over priced. stop nickel and diming people for stupid crap. lower your prices and you will have more customers. your never gonna get ahead by selling by high price tags. even if your marketing SAYS its worth it. you dont fool as much people as you think
  • If you actually read what the article says it states that verizon landline is losing money and subscribers because of cel phones... speaking of verizon their wireless devision... trust me, they're banking.
  • Verizon needs focus on customer service little bit more than usual
  • Will someone please fix this article, and make it clear that there are two Verizons, the landline and the wireless? The landline side is losing customers to the wireless side, something that's happening to all carriers. For example, for the first time in history there are now more people who use just a cell phone, than people who use just a landline. The wireless side, VZW, is doing great.
  • Just a sidenote - Verizon is also getting into being an outsourcing agency now too. And some contracts they will be taking up requires them to purchase XYZ company's equipment (network, servers, etc) as part of the deal for their support role. And some of those equipment costs will be in the millions. So these layoffs might also be part of triming the excess to prepare for their jumping on the outsouce agency bandwagon. Of course just what we need more of today - more lost jobs and benefits to outsourcing!!!!!!!!
  • ??????? = I LIKE IT !!
    I don