Verizon to cut 8,000 jobs

Posted July 27, 2009 11:07 a.m. EDT
Updated July 27, 2009 1:50 p.m. EDT

— Phone company Verizon said Monday it will cut 8,000 jobs from among employees and contractors before the end of the year to keep costs in line as the recession saps demand from businesses for telecommunications services.

Verizon (NYSE: VZ) operates a large network control center in Cary, N.C.

The company also offers local phone service in the Durham area, but Verizon is selling that coverage area and several others to Frontier Communications.

Executives said the cuts will come from departments dedicated to traditional, landline phone service.

In recent years, New York-based Verizon Communications Inc. has balanced layoffs in its wireline business with hiring in wireless, making for a net increase.

But Chief Operating Officer Denny Strigl said that will not be the case this time. He said there will be no large-scale hiring in wireless until the recession is over.

Verizon ended June with 235,000 employees. That doesn't include contractors.

Verizon shares fell 95 cents, or 3 percent, to $30.55 in morning trading.