Verizon is closing and consolidating its call centers in five states as part of a bigger plan to create new revenue streams. Fred Katayama reports.
Verizon is closing call centers in five states, including its home state of New York. The move will affect about 3,200 workers. The company says it's consolidating the centers to make better use of its real estate. Malathi Nayak covers the telecom industry for Reuters. (SOUNDBITE) MALATHI NAYAK, REUTERS TELECOM CORRESPONDENT, (ENGLISH) SAYING: "The wireless business in the United States is really saturated. Everyone has a mobile phone, and wireless businesses are really struggling to drive growth. So, as part of its plan, Verizon decided last year to reorganize its wireless business to find ways to save costs. And, what they've been doing is, try to move people call centers to other call centers, where there's extra capacity." Verizon has been looking at new revenue streams, such as digital media and advertising. It recently agreed to buy Yahoo for more than $4.8 billion. In April, nearly 40,000 unionized employees of Verizon's wireline business went on strike after hitting a roadblock in talks over a new labor contract. The strike was one of the largest in recent years. It drew support from Democratic presidential candidate Hillary Clinton. The call center closures involve employees who are not represented by unions.