UPDATE 2-Verizon merges two landline units

* Telecom, Business units to form Verizon Wireline

* Verizon Business chief Shammo to head Wireline group

* Verizon Telecom head Mead to become Wireless COO
(Recasts first sentence, adds CEO comments, other details)

NEW YORK, Oct 5 (Reuters) - Verizon Communications Inc
(VZ.N) said on Monday that it was reorganizing its landline
telecom business into one group, as consumers continue to
disconnect home phones in favor of cellphones or rivals.

Verizon said it hoped to improve its operating performance
by putting its two wireline business units -- Verizon Telecom,
which serves consumers, and Verizon Business, which targets
corporate clients -- into one group, Verizon Wireline.

"This very logical step reflects our commitment to
eliminate duplication, drive down costs, and find new ways to
stimulate growth," Verizon Chief Executive Ivan Seidenberg said
in a statement.

The statement made no mention of job cuts but spokesman
Peter Thonis noted that Verizon had been reducing headcount in
its traditional phone business for up to six years in order to
reflect the decline in home phone lines.

Like its bigger rival AT&T Inc (T.N), Verizon has seen
increased competition in recent years from Internet phone
companies and cable TV rivals, which branded into telephony.

In July the company, which then had about 235,000 workers,
had announced a plan to cut a further 8,000 wireline jobs in
the second half of this year.

The management restructuring follows its announcement last
month that Verizon's chief operating officer, Dennis Strigl,
64, was planning to retire by year end.

Verizon named Fran Shammo, president of Verizon Business,
as president of the realigned wireline operations and said
Shammo would report directly to Seidenberg.

Daniel Mead, formerly president of Verizon Telecom, will
become chief operating officer of Verizon Wireless, its joint
venture with Vodafone Group Plc (VOD.L).

Mead is replacing Jack Plating, who is retiring, and will
report to Verizon Wireless CEO Lowell McAdam.
(Reporting by Sinead Carew; Editing by Gary Hill and Matthew
Lewis)