• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Tech

Why Verizon Is Closing Call Centers After It Said It Wouldn’t

By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
By
Aaron Pressman
Aaron Pressman
Down Arrow Button Icon
October 13, 2016, 11:57 AM ET
Verizon workers are striking to preserve strong union jobs
Photograph by Pacific Press LightRocket via Getty Images

Probably the biggest issues in the bitter, seven week strike by workers at Verizon Communications this spring was job security—especially for call center employees. And the lowest point of the entire dispute came when striking workers went to the Philippines to see an outsourced call center and were chased through the streets by Verizon’s armed guards.

When the two sides finally reached agreement in May to end the strike, Verizon and the Communications Workers of America union pointed to enhanced job security at calls centers—plus a pledge by Verizon to hire even more U.S. workers—as a key piece of the new contract. “We’re especially proud of our commitment to 1,400 new hires—high quality and well-paying American jobs,” Mark Reed, Verizon’s chief administrative officer, crowed at the time.

So it was more than a bit surprising when Verizon disclosed on Thursday that it would be closing five of its U.S. call centers and reducing operations at two others. While workers will be offered an opportunity to transfer to remaining locations, up to 3,200 could be laid off, Verizon said. Workers were notified on Wednesday, which also happened to be the most holy day in the Jewish calendar, the holiday of Yom Kippur.

How could Verizon cut 3,200 call center jobs just a few months after pledging to expand its call center workforce? The answer lies in the split between the company’s unionized and non-unionized workers.

The workers who went out on strike worked in Verizon’s traditional wired telephone operations and newer FiOS cable TV and Internet unit. And no call centers serving customers in those units were affected by the just-announced downsizing.

Get Data Sheet, Fortune’s technology newsletter.

Meanwhile, almost no employees who work in Verizon’s vast wireless unit are unionized. Unlike competitor AT&T (T), Verizon has harshly resisted unionizing efforts among its wireless workforce. And so those employees, and the call centers where they work, didn’t have the benefit of any collectively bargained protections.

Verizon (VZ) said the need for cost savings drove the decision to close the wireless call centers. The company also said it was letting go an undisclosed number of workers at its chain of wireless retail stores for the same reason. The once fast-growing wireless market has slowed, and Verizon saw its wireless revenue shrink by 3% in the first half of 2016.

“The key driver behind this decision is to realign our real estate portfolio and customer service operations to make the best use of extra capacity in the remaining locations,” Verizon said in a statement. “This was a very difficult but necessary business decision. We value our customer service employees. They are highly trained, skilled and experienced and they will be encouraged to stay with the company.”

The contract agreement reached in May to end the strike did add a tiny number of wireless employees to the union, but the CWA said on Thursday it would continue pressing to make further gains in wireless.

For more on the deal that ended the strike, watch:

“CWA has been working with Verizon Wireless workers at call centers and retail stores, to help workers get the union voice and representation they want and so clearly need,” CWA president Chris Shelton said in a statement. “In fact, workers at VZW stores in Brooklyn, N.Y., and Everett, Mass., just won a first contract just this year. We will keep up the fight against ‘very greedy’ Verizon.”

So far, the union has made little progress in convincing wireless workers to join up. But Verizon’s latest round of cost cutting may change the situation.

About the Author
By Aaron Pressman
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Anduril CEO Brian Schimpf
NewslettersTerm Sheet
Brian Schimpf has been quietly running Anduril since its earliest days. And once he’s talking, he has a lot to say
By Allie GarfinkleMay 8, 2026
2 hours ago
The U.S. Securities and Exchange Commission headquarters in Washington, D.C.
AICFO Daily
Is quarterly reporting hurting investors or helping them? The SEC just weighed in—and the debate is far from over
By Sheryl EstradaMay 8, 2026
2 hours ago
Apple AirPods Pro in Cupertino, California, on Sept. 9, 2025. (Photo: David Paul Morris/Bloomberg/Getty Images)
NewslettersFortune Tech
Apple AirPods with cameras are coming
By Andrew NuscaMay 8, 2026
3 hours ago
Match Group CEO Spencer Rascoff
SuccessJobs
Match Group’s CEO revived a shuttered Tinder internship program for Gen Z—and received over 30,000 applications for just 27 spots
By Emma BurleighMay 8, 2026
3 hours ago
Wall Street piles into ‘NACHO’ bet on looming oil shortages in June
EconomyMarkets
Wall Street piles into ‘NACHO’ bet on looming oil shortages in June
By Jim EdwardsMay 8, 2026
3 hours ago
Why CEO Bill McDermott says ServiceNow’s 39% stock crash is Saaspocalypse ‘nonsense’ and why AI will make it a trillion-dollar company
AIServiceNow
Why CEO Bill McDermott says ServiceNow’s 39% stock crash is Saaspocalypse ‘nonsense’ and why AI will make it a trillion-dollar company
By Alexei OreskovicMay 8, 2026
6 hours ago

Most Popular

California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
North America
California farmers must destroy 420,000 peach trees after Del Monte closes its canneries and cancels more than $550 million in long-term contracts
By Sasha RogelbergMay 7, 2026
17 hours ago
U.S. Treasury will have to borrow $2 trillion this year just to continue functioning—more than $166 billion every month
Economy
U.S. Treasury will have to borrow $2 trillion this year just to continue functioning—more than $166 billion every month
By Eleanor PringleMay 7, 2026
1 day ago
'Blue dot fever' plagues musicians like Post Malone, Meghan Trainor, and Zayn as a growing list of artists cancel tours due to lagging ticket sales
Arts & Entertainment
'Blue dot fever' plagues musicians like Post Malone, Meghan Trainor, and Zayn as a growing list of artists cancel tours due to lagging ticket sales
By Dave Lozo and Morning BrewMay 7, 2026
19 hours ago
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
Magazine
A Michigan farm town voted down plans for a giant OpenAI-Oracle data center. Weeks later, construction began
By Sharon GoldmanMay 6, 2026
2 days ago
Tokyo is throwing out its strict office dress code and asking workers to wear shorts amid the war in Iran energy crisis
Success
Tokyo is throwing out its strict office dress code and asking workers to wear shorts amid the war in Iran energy crisis
By Emma BurleighMay 5, 2026
3 days ago
Current price of oil as of May 7, 2026
Personal Finance
Current price of oil as of May 7, 2026
By Joseph HostetlerMay 7, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.