Misleading layoff news
July 27, 2009
Verizon reported weak Q2 results today due to shrinkage in their wireline unit. So of course they announced more layoffs, which is just standard operating procedure for a CFO wanting to reassure The Street that costs are being contained and profitability is being restored next quarter. Whether those cuts actually materialize no one ever checks.
Meanwhile we learn that they are aggressively adding FiOS TV and broadband customers, and the rumor is they are hurrying to launch their LTE network in early 2010, perhaps for Apple’s tablet, which you would think requires serious capital investments and manpower for deployment. So you have to wonder what the net effect is on jobs. Definitely not 8,000 fewer.
And of course Microsoft is opening dozens of stores, and 7-Eleven is planning a major expansion this year, including 600 stores in Southern California alone. But you would never see this headline on the front pages: “7-Eleven adding 5,000 jobs”.