Verizon Hawai'i says 46 more jobs to be cut
By Frank Cho
Advertiser Staff Writer
Verizon Hawai'i yesterday said it would eliminate 46 jobs in the company's national operations division amid pressure from increasing competition and falling market share.
Yesterday's announced cuts brings to 72 the number of Hawai'i jobs the company said it was cutting since it announced last week it would eliminate 26 positions.
Citing pressures such as the slow economy, competition from other phone companies, adverse regulatory decisions and the increased use of competitive technologies, Verizon said attrition, careful management of overtime and a reduction in outside contracting had failed to stem business losses.
"The impact of all of these external factors causes the loss of customers and demand for traditional wireline services," the company said in a statement to workers.
Verizon Hawai'i is the state's biggest telephone company, with more than 2,200 workers. But the company said it had lost more than 10,000 business main lines and 9,000 residential second lines since January 2000 — a drop of 7 percent and 14 percent, respectively.
For the first six months of the year, Verizon Hawai'i reported its local phone line revenues fell $16.1 million, or 10.6 percent, to $136.5 million, compared with the same period a year ago. Revenues for long-distance services fell 66 percent for the first six months of this year, to $3.5 million, compared with a year ago.
The company said other business units at Verizon Hawai'i still were reviewing staffing needs for the year.
"There are not any plans (for further cuts) at this point, but that is not to say it won't happen," said Ann Nishida, a Verizon Hawai'i spokeswoman.
The Hawai'i job cuts are part of a nationwide program by the telephone giant to reduce costs.
Verizon Hawai'i' is a wholly owned subsidiary of GTE Corp., which is a wholly owned subsidiary of Verizon Communications Inc. That company was formed by the merger two years ago of Bell Atlantic and GTE Corp., which included Hawaiian Tel.
Verizon Communications is carrying about $57 billion in debt, down from more than $64 billion a year ago, and trying to reduce it further.
Verizon said it would ask first for voluntary separations. Employees who take them will be eligible for severance packages worth up to $73,500, depending on years of service. If there are not enough volunteers, the company said it might lay people off.
Employees will have between Nov. 14 and 27 to decide whether to accept the separation packages. Workers who are accepted will be off the company's payroll by Dec. 14.
Correction: Since January 2000, Verizon Hawai'i has lost 9,000 residential second lines. The type of lines being lost was unclear in a previous version of this story.
