Verizon reports Q2; reaffirms Palm Pre launch in early 2010, plans to cut 8,000 employees in 2009

General

Verizon, on its investor conference call this morning, reaffirmed its intentions to launch the Palm Pre in early 2010. While news of Palm’s revival handset hitting Verizon in the near future is hardly a surprise, Pre hopefuls loyal to Big Red will certainly find comfort in hearing VZW announce the news publicly once again. The impending arrival of the Pre comes alongside Verizon’s Q2 earnings report, which was otherwise laden with bad news. Revenue came in at $26.9 billion, up 11 percent YoY but profits dove a massive 21 percent to $1.48 billion. Wireless saw a 27.7 percent increase YoY in total revenue with a massive 52.6 percent increase in data revenue. Unfortunately, it just wasn’t enough. The real news from today’s call is that Verizon announced plans to reduce its workforce by around 8,000 between now and the end of 2009. It’s pretty obvious that Big Red needs to take drastic measures in its effort to cut operational expenses, but ouch.

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42 Comments
  • Ross

    “Lol its gonna be so funny come wed when sprint post their results and big hess says the pre is a 1 year extended exclusive. Or just think about verizon with a pre and verizon app catalog”

    If Sprint had the Pre exclusively for a year, they would have announced that already.

    I really wish Sprint’s customer service wasn’t so atrocious. They have much better data packages than Verizon and I’d switch to them but it’s just too painful dealing with Sprint.

  • Who?

    They best release a 16gb version of the Pre.

  • Don Louie Cantone

    Ross, not one of the exclusive phones out now has a confirmed end to that exclusivity and Sprint is no different being hush with the Pre. Palm would be silly to not allow them to get this phone but they better do like Apple and demand it stays as is or they can’t have it, vzw is known to screw up good phones

  • ken

    Finally got the iphone (3gs) on Sat. used it over the weekend. Greatest phone ever. Video is amazing. Mobileme syncing of calender, contacts and e-mail worked as advertised. excellent business phone. app store is also very cool. resident evil is amazing on this phone.

    battery life was not so great, but the apple guy said to turn off wifi and that would help. i could see that it was going to be acceptable but probably would require a charge around 2 or 3 during a normal business day.

    att? f*cking dealbreaker. i got to my warehouse this morning and couldn’t dial out to anyone for about 5 min. tried turning the phone off and was able to make one call and then after that nothing again.

    for anyone that is int. my office is in SF at 3rd and Cesar Chavez. anyway, already traded it in for the tour on verizon (where i was before) making calls now, but pretty disappointed. really wanted this to work. not trying to re-hash the carrier wars, because i know it’s different all over.

    i really hope verizon gets this soon.

  • fernando

    wait, so their profits for one quarter was ONLY 1.48 BILLION dollars, so naturally they have to layoff 8,000 people. I understand trying to make money and so forth, but $1,480,000,000.00 in PROFITS in a 3 month span and somehow that isn’t enough that they must layoff 8,000 employees, but wait they still have over 230,000 other employees so its ok, i mean 8,000 looks really small in comparison, so those other 8,000 can just go find other jobs and struggle to pay the bills in the meantime so that maybe for the next 3 months verizon’s profits may reach $1,560,000,000.00!!!!! GOOOOOOO VERIZOOOON!!!! . It just makes you sick.

  • Jeremy

    Hey Zack.
    Can you please update the article to show that it is from the wireline portion of the company that is having the layoffs? Thanks!

  • Ross

    @Don Louie

    Sprint is in a different position than the other carriers. It’s in their best interest to announce that a hot handset is exclusively theirs for as long as they can. I don’t know that the Pre caused too many to switch, but I’m sure there was a decent amount of folks who probably decided to wait until VZW has it.

  • returner of many phones

    I work for Verizon, it’s going to be primarily our wireline business. They’re cutting about 10% of every work group in the fiber area. The majority of the cuts are coming from the East Coast, where unions are strong and there is a lack of contractors to get rid of first. They actually sent out a Forced Surplus e-mail just last week letting us know that if we don’t voluntarily take packages to quit there will be lay offs.

  • Cell_Dude

    Makes me sick to know they are forcing packages on workers. And there is nitpicking “wireline not wireless”, does it matter? People are getting laid off. Forced to quit in fact. It’s happened here where I live with other companies and it still sickening.

  • http://www.bulldoglist.com David Thande 3®

    Pre coming to Verizon!!!

    And 8,000 job cuts!!!!!!!

    Keep bringing the good new!!!!!

    whoooooo!

  • Don Louie Cantone

    I’m anxious to see what type of chop job vzw does and how they will extort extra money from thier subs that want the privilege of owning it with them

  • Jeff

    I recently heard that Verizon will cut ties to the Palm Pre’s developing app store because VZ is developing its own. This, I hear, will cripple the Pre’s full capabilities.

  • Don Louie Cantone

    That would be par for the course on thier part, on top of all the extra money you’ll have to pay monthly for it should show how teaming up with Sprint to launch it 1st wasn’t such a bad idea

  • NL

    I don’t think it was Palms “idea” to partner with Sprint. Essentially it was the two ugly wallflowers at the dance pairing up.

    Don’t get me wrong, I like Sprint, its service is not up to par, but its prices are good. My lines cost me $45 a month and have unlimited data and text. And good for Palm for innovating after riding so long on its name.

    But Palm would have gone with Verizon or ATT if they could have.

  • Don Louie Cantone

    NL, Sprint’s services are more than sufficient, better than most in a lot of areas, and Palm’s been launching phones with them 1st for a while. ATT has a decent relationship with them but vzw not so much, the wallflower thing doesn’t hold water. It is more of a continuation of previous dealings, none of the other carriers launched any Palm phone in the same time frame besides Alltel

  • NL

    Don Louie, Sprint service is not up to par, and the evidence is staggering due to the losses in customers.

    You can say it is up to par but that demonstrably false — is like Oldsmobile saying it is on par with Honda. The customers vote otherwise.

    The wallflower analogy is spot on. There were doubts as to Palms viability and Sprints so they ended up going to the dance together.

    Do you really think Palm would not have gone with Verizon or ATT with over 80 million each and both growing , as opposed to Sprint with under 40 million and dropping?

    As far as other carriers not using Palm already — well that is because Palm was screwing up and the ver definitiuon of a stagnant company at the time they were looking ofr a pre carrier. The phone launched at the time they were looking for a partner for Pre was the trouble ridden 800w, THE most quickly canceled smartphone ever. It just proves my point.

  • Don Louie Cantone

    NL, the losses and coverage have no nothing to do with each other and independent studies along with this sites “Carrier Wars” show Sprint’s coverage is very, very good. Now back to Palm and Verizon, look at the carrier’s recent history of Palm phones and my point is proven because Verizon is always late. Your assessment is short sighted if you miss prior relationship the wallflowers share

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