Verizon sees delayed rebound, to cut more jobs

NEW YORK, USA: Verizon Communications Inc said it is facing a slower-than-expected economic recovery and plans to cut 6 percent of its workforce, adding that it forecasts only a modest rebound in late 2010.

After reporting fourth-quarter results that were in line with Wall Street's expectations, Verizon said weak corporate spending hurt its traditional fixed-line business, offsetting subscriber growth at Verizon Wireless. Shares fell 2 per cent.

The phone company forecast 13,000 job cuts at its fixed-line business this year, or 6 percent of Verizon's total workforce. It cut 17,000 jobs in 2009, ending the year with 223,000 workers. Severance charges had pushed Verizon into the red in the fourth quarter.

"We're facing more significant headwinds than we'd thought we'd face," Chief Executive Ivan Seidenberg told analysts on a conference call, where he promised to focus on improving profits in the fixed-line business.