Verizon to Execute Largest Layoffs in History: Report
Verizon Communications Inc. is poised to implement its most extensive layoffs in history, affecting approximately 15,000 employees. This decision marks a significant restructuring initiative led by the new CEO, Dan Schulman.
Details of the Layoffs
The planned job reductions will impact around 15 percent of Verizon’s workforce, with cuts expected to commence as early as next week. This information comes from a source familiar with the situation, as reported by Reuters.
Impact on Workforce
- Approximately 15,000 jobs to be cut
- Affects 15 percent of the workforce
- More than 20 percent of management ranks will be affected
Verizon currently employs about 100,000 workers in the United States. These layoffs follow previous reductions, including a voluntary program last year that resulted in 4,800 job cuts.
Strategic Shift Under New Leadership
Dan Schulman, a former PayPal executive, was appointed CEO in early October. His tenure brings a focus on aggressive transformation aimed at reducing costs and restructuring operations. Schulman acknowledges the need for Verizon to evolve amidst intense competition within the telecommunications sector.
Responses to Market Pressures
Verizon is experiencing declining subscriber growth and increased competition from AT&T and T-Mobile. Schulman has indicated that the company cannot rely solely on price increases for financial growth.
Franchising Store Operations
As part of this restructuring, Verizon plans to transition around 180 corporate-owned retail locations into franchised operations. This change aligns with the company’s strategy to streamline its operations.
Financial Outlook
Recently, Verizon’s stock saw a modest increase of 1.3 percent in trading. The company has made significant investments in the past, including $52 billion for wireless spectrum and a $20 billion acquisition of Frontier Communications.
As Verizon navigates these changes, the effectiveness of its cost-cutting measures in retaining subscribers remains uncertain, highlighting the challenges ahead for the telecommunications giant.
