Verizon Closings to Cost 588 Iowa Jobs

By Dave Dewitte, The Gazette, Cedar Rapids, Iowa

Apr. 29–Verizon Communications revealed plans Friday to close four call centers, eliminating 1,661 jobs, including 569 at its Sergeant Bluff center.

Verizon will also eliminate 19 jobs in Cedar Rapids, the company said.

The call centers were part of the MCI business acquired by Verizon last January for $8.5 billion.

“This is a decision that had been made prior to the merger, reflective of the overall change in the telecommunications industry,” Verizon spokesman Bill Kula said.

Verizon is now emphasizing wireless and broadband services, and wire-line services to large businesses and governments.

In addition to Sergeant Bluff, centers to be closed by June 30 are in Springfield, Mo., Greenville, S.C.; and Austin, Texas.

Verizon will use contracted call centers in Pennsylvania and Ohio to provide customer services that were handled by the call centers.

Verizon will eliminate 19 positions in Cedar Rapids that support the call centers.

A Cedar Rapids call center that survived the cuts was not eliminated because it does not serve residential markets. It is dedicated to serving small and mid-size business customers.

About 44 support positions in Sergeant Bluff will remain.

Gov. Tom Vilsack has instructed Iowa Workforce Development to help affected workers in Iowa. They are expected to get between six weeks and six months severance pay from the company.

Sen. Chuck Grassley, R-Iowa, said he would support an effort to gain resources for worker retraining and job placement from a National Emergency Grant from the U.S. Department of Labor if needed.

Kula said Verizon hopes to sell the Sergeant Bluff call center to a company that needs existing skilled workers.

The consumer shift to Internet-based and cellular phone services and laws that restrict telemarketing have resulted in a 5 percent annual shrinkage in Verizon’s residential land-line business.

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