Verizon: Employee strike has led to significant decline in new customers this quarter

Verizon: Employee strike has led to significant decline in new customers this quarter

During the course of an address at the MoffettNathanson investor conference in New York on Thursday, Verizon Communications CFO Fran Shammo said that the company witnessed a significant plunge in new customers this quarter, thanks largely to the massive strike of telephone, cable TV, and broadband Internet service installers at the company.

Revealing that there has been a substantial drop in installations and new orders of FiOS service, Shammo said that Verizon will likely report a net loss of cable TV or broadband customers in the quarter, as compared to net gains recorded by both the businesses a year back.

Verizon’s significant decline in new customers this quarter is an upshot of the massive walk out of nearly 40,000 employees who, working from Massachusetts to Virginia, install as well as service the company’s traditional telephone and the newer FiOS offerings.

The employees went on strike on April 13. After one month of heated allegations traded back and forth by Verizon and the employees, the Obama administration intervened in the fight last Sunday and asked both sides to come to the bargaining table with a federal mediator.

Meanwhile, though Verizon had initially said that the strike was not likely to have a substantial effect on its financial results for the second quarter, Shammo said on Thursday, that the financial results would be affected because of the drop in new installations and the need for management and replacement workers to take up repair duties for more than one month now.

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