Verizon Employees Accept Voluntary Separation in Large Numbers

Verizon yesterday announced that 21,600 employees, including 5,600 union employees, have accepted the voluntary separation package offered in October, according to a Merrill Lynch report. Verizon commented on its third quarter results conference call that it anticipated 12,000 employees would voluntarily leave the company.

The plan was primarily targeted at managers in the domestic telecom unit, union employees in the Mid-Atlantic and the Northeast and employees in the information services division, Merrill Lynch says.

Merrill Lynch estimates that the telco will take a charge against fourth quarter earnings

of approximately $2 billion, of which more than $1 billion will be a cash cost up front. The charge reflects cash severance, medical coverage for a year after severance plus

pension liability true ups.

As for Verizon’s financials, third quarter 2003 EBITDA margins in Verizon's wireline business were 39.6 percent down from first quarter EBITDA margins of 44.4 percent.

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