Verizon Communications Inc. posted a lower quarterly profit and said it would cut 8,000 jobs in its wireline business, as weakness in wholesale and corporate segments overshadowed wireless growth.

Verizon, whose shares fell 2.6 percent on Monday morning, said it would accelerate cost cuts in its landline business, with new layoffs amounting to 3.4 percent of its workforce of 235,000 employees. They come on top of 8,000 job cuts in the last year.

"Clearly the broader economic issues are affecting the business," Chief Financial Officer John Killian told analysts on a conference call. In particular he cited delays to big telecom projects at corporate clients as well as job cuts, which reduce business telephone use.

"We're hoping as we go further into the year we'll see some recovery in employment and in the economy," Killian said .

In addition to the upcoming cutbacks Verizon also plans to "significantly reduce the wireline cost structure over the next 12 to 18 months," Killian told analysts.

Verizon's second quarter results were largely in line with Wall Street expectations. While revenue rose 0.2 percent in its mass-market segment, including home phones and small businesses, it was offset by declines in wholesale and enterprise.

By: DocMemory
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