Verizon Communications Inc. (NYSE:VZ) is closing call centers in five states.
On Thursday, the company announced the move which contradicts its previous claim that it had no plans to close call centers as it sought to keep as many employees around as it could. However, Verizon is now cutting back, resulting in 3,200 workers losing their jobs.
Overall, 162,700 workers are employed by Verizon, making it the leading phone carrier in the U.S. The company recently announced the acquisition of Yahoo, which it shelled out $4.8 billion for in an attempt to expand its advertising capabilities.
The company said it is reshaping the places where it has call centers by moving some workers to call centers in different states. The move affects workers in the following locations:
- Near Rochester and Orangeburg, New York
- Bangor, Maine
- Lincoln, Nebraska
- Wallingford and Meriden, Connecticut
- Rancho Cordoba, California
New York will be hit the hardest by the move as 850 of its workers will be affected by these call centers shuttering its doors. Not everyone will lose their jobs as some workers have the option of moving, earning relocation packages starting at $10,000.
Regarding the Yahoo acquisition, Verizon is looking to reduce its payment to the company by $1 billion due to the email company failing to mention that it allowed the U.S. government to read the emails of its customers, possibly violating security regulations and causing a media fiasco.
VZ shares are holding steady Thursday afternoon.
