It's deals like this that have cost this company greatly, not only on the financial end but on the human end.
https://www.bloomberg.com/news/articles/2017-11-21/verizon-is-said-to-be-on-the-hook-for-mayer-s-yahoo-search-deal
20 replies (most recent on top)
I'm not saying they didn't or don't make dubious financial decisions. I'm mocking the idea that Verizon is laying people off because of said decisions. If Verizon never bought AOL or Yahoo, people would still be getting laid off. Because Verizon is a fatty company. Full stop.
“Mr. Buffet” is correct in his assertion that technology will replace many aspects of human labor.
Where he goes wrong is when he tries to use this unrelated fact to “prove” that a certain corporation has not made a few embarrassing strategic mistakes.
Watching myself be proven right over and over again. How about you?
"The layoffs aren't because Verizon is hurting. It's because technology is creating redundancy in staff, and no business is going to keep staff that is redundant."
Too bad you don't have clue about what you're talking about. Maybe same departments are "redundant", but a lot of them are way understaffed and not able to keep their heads above water. Most of those departments just lost more people in the latest latest 16,000 employee layoff.
Most of these techs were the ones who worked in customer service, so guess who loses out?
This article is flawed.
It doesn't even take into account (or even mention) the possible BILLIONS VZ will be on the hook for regarding the hacking of ALL of the Yahoo email accounts.
No doubt, Yahoo users will band together, be granted class-action status, and sue the fuq out of Verizon. But wait...that happened on Yahoo!'s watch, right?
Doesn't matter. Verizon bought the company, warts (and lawsuits/debt) and all. Like genital herpes, they're stuck with it for life. It may not kill them, but it will make them VERY unattractive to an M&A partner.
@QnQ68BR-1hzs Thank you, Mr. Buffett is nice knowing a great financial mind like yourself is telling us to go f--- ourselves and that most of us are doomed.....By the way, if a might ask, what's a genius like you with all the answers doing trolling around a layoff board?
Happy Thanksgiving!
Look at all these armchair financial analysts.
I get it. When a company starts laying off, people who are afraid start looking for things the company did that resulted in the need. The idea that human workforce is gradually being replaced by automation is too scary to consider.
Again. Hundred of millions of dollars, while not what a shareholders wants to hear, is not going to hurt Verizon in the end. Yahoo and AOL aquisition is not going to hurt Verizon in the end. Oath is third (so sorry I forgot Facebook), and Yahoo was making something like $5 Billion a year on its own. That's been dwindling, but Verizon's platform renews it's potential. You guys act like the whole damned company is just going to go under one day. Calm down. They're cutting jobs because a lot of jobs are redundant. You expect them to continue to pay salaries to people whose jobs are becoming less and less necessary? Grow the f--- up- and then spend a quiet evening researching automation and job displacement. I suggest starting with the PriceWaterhouseCoopers report showing that 30% of Americans may lose their jobs by 2030.
1pst you are not too bright.
Amazon is Google's biggest competitor by a huge margin followed by Facebook an Apple......then after a few Chinese companies and an even wider margin, you have Verizon. I would say Verizon isn't even in Googles rearview mirror today.
That being said Verizon has made moves to be a competitor and with a friendlier White House has a slim chance to be a player one day. In Donald Trump’s Washington, the WH has said that those companies. Amazon, Facebook, and Apple have gotten so powerful they should be regulated in some way. The United States has long since disliked Monopolies. Hence the Phone Company.
Lastly, we now get political.....Under the pay to play "donors" companies that have literally bought the White House in recent years, the Last President has installed over 350 federal Judges with lifetime terms no less ( Google it ) and with that, as we see today stops this White House from making even the most basic Presidental moves. Today's WH hands are tied for many years to come thanks to the last President who you might say is still in charge though these lifetime judges he has appointed. FACT!
http://www.heritage.org/election-integrity/commentary/no-more-obama-judges
IS NO RIF.. agile worker reorgnisation
Jeyshebegyhdnekau alaleheyejjejduenko
Oh yeah and Google's biggest competitor is Facebook, not Verizon in mobile advertising idiot.
While I agree Verizon is bloated with over 160,000 headcount, they are not financially healthy.
Have you looked at Verizons balance sheet? It doesn't look good. $120 billion in debt, borrowing to pay the dividend, issuing more debt bonds than the government. Then old man Lowell says $10 billion in cuts to pay the dividend. Sounds like trouble to me.
And that $4 billion you say is more like $3.62 billion. And what is really troubling is it is FLAT year over year. Get off your high horse.
Lord have mercy, you guys lack foresight if nothing else. Do you know how much these advertising platforms are worth in revenue? Google made over 7 Billion dollars on it's search, display, and advertising revenue in Q1 2017. Do you know who Google's number one competitor is, now that Verizon bought AOL and Yahoo? Verizon. The fact that you can't see the product is not an indicator of its worth.
I'm not even trying to justify the layoffs. Verizon makes over $4 Billion in profit in a single quarter (PROFIT). They can buy AOL and Yahoo and not even feel it by the end of a fiscal year. The layoffs are a product of automation and technology. Take the retail operations staff, for example. Retail stores had two people on salary doing nothing but checking in inventory and performing operational upkeep- while they had three-to-five managers just for sales, and a ton of reps overpaid and under-utilized. They rolled out the SAP inventory system, shifted the now streamlined responsibilities to the more than capable and available hands of managers and reps, and laid off the operations staff. You can apply this story to every division, and it's going to continue. Spend an evening researching job loss predictions at the hands of technology and automation.
The layoffs aren't because Verizon is hurting. It's because technology is creating redundancy in staff, and no business is going to keep staff that is redundant. That's just silly. Have a look at T-Mobile's structure. Bare bones. They stay out of the light when it comes to this stuff because they never had the excess in staff. They've been running skeleton crew because that's all they could afford, and now technology has caught up to the point that it's all they need.
@QnQ68BR-qpb Agreed and both sides of the house have fallen victims to this poor leadership.
Paying 150 Billion for Vodafone and the numerous failed ventures into the millennial market.
Selling over 20 states of Fiber (the hottest ticket in town right now) and putting all the eggs in the 5G basket. A horrendously bad move.
AOL...Yahoo....Terremark....Billions and Billions up in smoke.
If I can get a retirement out of here it's will be a miracle
RVL: Wireless created this mess by buying Yahoo? Don't really think it was them! And who knows, uptake of 5G could once again cause contraction in the wireline space, then will you be happy saying "lmao what goes around comes around,and it did for you guys..." And it's always classy being happy about other people's misfortune. Pretty sure that most people on this forum have very little input into any big VZ decisions.
the fcc is about to give us a big gift, bigger than text msg bundles
WOW! a 750 Million dollar "oversite" ? I guess layoffs are in order then. And it won't be those Union bastards....with "leadership" like this they were smart enough and knew to enter into a contract with this company.....well played.
Go after yourselves,you guys created this mess,and now your all crying about losing your jobs,cause you thoughy you were better than the wireline employees,OH oh can you hear me NOW....you can't hear me cause your all crying now...lmao what goes around comes around,and it did for you guys...
But we have Hum and GO90.
That is an almost 1 Billion dollar error on top of paying 4.8 Billion for a brand damaged already failing company.
Let's go after the Unions those bastards!