Verizon Outsources IT, Offers Sweetened Buyout

Verizon is offering sweetened buyouts to thousands of employees, including its entire management, in hopes of trimming its labor force significantly, the Wall Street Journal reported today. The new report comes a day after Verizon announced a $700 million IT outsourcing deal with India-based Infosys.

The early retirement program is the first that Verizon Communications Inc. (NYSE: VZ) has offered in 13 years, according to the WSJ. The program offers three weeks of severance pay for every year worked, clearly targeting long-time staff.

Front-line sales staffers are excluded from the offer but other line staff as well as management are being targeted, the report says.

According to TheLayoff.com, Verizon employees are speculating that IT employees who don't retire early could find themselves transitioned to Infosys almost immediately. There is further speculation on that site that the primary job of those employees for the coming year will be to train Indian-based counterparts, who will then replace them at a lower cost.

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Like all network operators, Verizon is under pressure to lower its operating costs. A significant part of that is continuing to shed higher-paid employees, replacing them with automated processes or outsourced deals.

Verizon did reach an agreement in midsummer with the Communications Workers of America and International Brotherhood of Electrical Workers on a deal that covered 34,000 call center, Central Office and field technicians.

— Carol Wilson, Editor-at-Large, Light Reading

Atlantis-dude 10/2/2018 | 7:31:34 PM
got 2b tough on folks .. why didn't they do like att in retrianing
Bob Cratchit 9/30/2018 | 1:43:16 PM
70% of IT get no sweets Not all management gets the sweetened buyout!

VZ is actually stealing the severance pay of 4800 (nominally 'management') IT workers being involuntarily terminated, and using it to fund the $700 million outsourcing of their jobs to India-based InfoSys (IS), plus forcing them to train their replacements.

These 4800 do not get their earned severance for this termination up front with freedom to work anywhere (as per normal), cannot post for another VZ job (as per normal), have to accept the IS job offer with a week to decide or else forfeit both a normal severance and the IS job, work there at least a year (normally-lower IS pay supplemented by the stolen severance will be raised up to their previous VZ levels for that year only, as if stringing out their severance and bundling it with IS pay, to coerce their staying the full year and not leave money on the table that was rightly owed to them up front), after which they are likely to be fired with no severance, now being 1-yr IS employees.

It's a backdoor outsourcing to a foreign company, funded off the backs of the workers' own stolen severance pay!
Carol Wilson 9/26/2018 | 12:14:31 PM
Re: Half Truth Thanks for your comment, you've confirmed what was rumored that I wasn't able to confirm yesterday before the deadline for posting. 

If speculation is accurate, the folks moving to Infosys on a one-year contract will essentially be training their offshore replacements. 

That, combined with no severance for time put in, seems like a very harsh reality.  
Kfamily 9/26/2018 | 8:37:37 AM
Half Truth Your article states only half the truth, the good truth of course. But the article and media should also write about the other 3000+ employees onshore and offshore who did not get the same severance package offer because we were forced to move to Infosys with guaranteed one year pay. We have lost all of the years of service we put into Verizon.
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