Technology advances boost operator profits, realign workforce

The telecommunications industry has seen operations transformed by advances in technology, which have spurred innovation and profits, while at the same time supporting leaner operation. This move was highlighted by a recent Reuters report that found across the nation’s largest companies, profits during the past decade have surged well ahead of workforce gains.
The report noted in one example that Verizon Communications, which is the parent company of Verizon Wireless, had managed between 2001 and 2013 to more than double its annual inflation-adjusted operating profit, while at the same time cutting its workforce by 30%. Verizon said it ended the second quarter of this year with 177,800 employees.
The story cited Robert Litan, a scholar at the Brookings Institute, who explained that 2001 “marked a turning point when firms began managing headcount more aggressively through the use of more efficient global supply chains, technology and other methods such as outsourcing U.S. work.”
Verizon was also cited for cuts at call centers, which the carrier made as “Internet startups began providing 411 directory assistance service for free.” Earlier this year, published reports indicated that Verizon Wireless would shut down five call centers and consolidate seven additional locations in moves expected to impact around 5,200 employees.
Sprint announced similar plans in March, when it said it would cut 1,550 customer service positions, including the closure of a number of call centers and reductions in staff at others. T-Mobile US made similar moves in 2012, announcing plans to close seven call centers, resulting in 1,900 job cuts.
This week, workers at an AT&T call center in Atwater, California, demonstrated in hopes of convincing the company to keep the facility open past its previously announced Aug. 25 closing date. That location supports more than 400 employees. AT&T explained that the call center was to be combined with a location in Cerritos, California, adding that the company did have 650 open positions available across the state.
However, wireless carriers have also added new positions across other sectors of their operations. Verizon Wireless announced a rash of hirings on the heels of the call center consolidation.
The Reuters report added that while technology has allowed for greater performance from large companies using fewer employees, those moves have also opened up new opportunities for “freelance careers” outside the normal confines of big corporations.
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