NEW YORK-Verizon Communications Inc. said it expects to record an after-tax fourth-quarter charge of approximately $2.8 billion related to a voluntary separation plan under which 21,260 employees left the company’s payroll this quarter.
Verizon, which is the majority owner of Verizon Wireless, added that approximately $1.1 billion of the charge involves cash severance payments and related costs associated with the voluntary separation program, with the remainder representing pension and post-retirement benefits costs.
Rival telecommunications provider SBC Communications Inc., which is the majority owner of Cingular Wireless L.L.C., announced yesterday it would take an approximately $150 million charge during the fourth quarter related to the planned cut of up to 4,000 jobs during the quarter.
