Wow, how are they going to pay for this?? Sell off wireline or ramp up massive RIF's in the not too distant future.....
https://www.marketwatch.com/story/verizon-spends-45-billion-in-major-5g-spectrum-auction-while-at-t-spends-23-billion-11614205421
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And people wonder why massive lay off's in Feb, this and CEO pay went up.
Same way AT&T is doing it. With slash and burn Bill Morrow. They are paying new employees more and existing less removing benefits to get tenured off the books. My friend told me their job title went from maxing out at 112K to $86K. New “performance management system” and requirements. C Suite still raking in outrageous salaries. Layoffs basically got shuffled over to the DTV segment with Morrow as CEO to completely tear it apart and get rid of those people.
And you wonder why there was just a massive lay off of retail mgmt and indirect mgmt and lots of retail stores sold off.
I mean I’m sure they can polish up bluejeans and make a mint if they sell before everything opens back up.
Great leadership and Verizon -2.0 strategy has resulted in massive debt = RIFs and outsourcing.
Seeking Alpha: Verizon Finally Gets Serious About Midband
Mar. 01, 2021 9:30 PM ET
Summary
The US carriers have all pursued different 5G strategies. Verizon has focused on mmWave, while T-Mobile focused on midband.
As predicted by many, including me, T-Mobile's midband-first has proven to be the winner for right now, and Verizon has a lot of catching up to do.
While Verizon is catching up, they will be adding more debt to their already extraordinarily high pile.
They have long been the mobile brand of “Best Network” in the US, but T-Mobile has a chance to steal that from them.
Verizon retail and customer care are already dumb as rocks. Imagine what happens as they keep laying ppl off and their top talent leaves for better things.
Here is how smart Verizon is with 5G. I ordered new SIM cards for my 5G iPhone 12’s and they sent me 4G Sims which aren’t compatible with those phones. And we trust them with spending $45 Billion on 5G wisely???? They have perfected laying off employees. Have yet to see them do the same with 5ghee.
Sounds this will lead to $45 billion in Layoffs to pay for it. Customers win. Employees lose. TMobile only spent $9 Billion... and they’re hiring.
There are lots of employees with Sr. Manager in their title. Also lots of company vehicles assigned to folks that do not drive them everyday. What I see is a lot of people attending meetings while the actual work is accomplished by outsourcing. There is a lot of room for cost savings, and its coming!
Guess the $27 billion TMO paid to acquire all of Sprint’s spectrum AND their entire customer base doesn’t look like the dumb move VZ leadership made it out to be now, huh?
Poor decision after poor decision in the C suite....
There's a big difference between a 5G Service Provider and 5G Technology Company. Verizon doesn't have the technical talent or culture to be a technology company. We sell & market 5G services... no research & development on 5G or software occurs at Verizon
With a $155 BILLION in debt already, I think the credit cards are maxed out. Yikes...
Let's think about this for a second. The last major round of "cost cutting" was 10 billion over 3 years which included RIFs and VSPs. Imagine now 45.4 Billion dollars in new debt to deal with. RIFs will NOT be enough unless you lay off 40-50% which is not possible. What is likely is selling off segments such as wireline (to Comcast), IT (to IBM, or Infosys, etc.), and maybe even media (to FB, etc.) , in order to: 1) generate capital to reduce debt, 2) humanely shed employees to become part of the buying companies and reduce costs, and , 3) groom Verizon to become a pure 5G Technology company by end of 2023. Expect a rollout of exclusive and sophisticated 5G applications as well as lots and lots of marketing.
What's left to gut. The frontlines are so thin.