Verizon to Slash 15,000 Jobs Amid CEO’s Cost-Cutting Strategy
Verizon is preparing to implement significant job cuts, impacting approximately 15,000 positions. This decision comes shortly after the company’s new CEO, Daniel Schulman, took office. The announcement has raised concerns in the telecommunications sector regarding the company’s ongoing struggles to maintain market competitiveness.
Job Cuts Amid Cost-Cutting Strategy
Verizon has indicated that it will reduce its workforce as part of a broader strategy to mitigate rising operational costs. The move is seen as necessary due to increased competition from rivals, including AT&T and T-Mobile, which have reported growth in postpaid subscribers while Verizon experienced a decline.
Employee Statistics
- Current full-time equivalent employees: Approximately 99,600
- Job cuts: 15,000 positions
- Expected timeframe for cuts: Within one week
- Store transitions to franchises: Around 200 locations
The company’s revenue for this year stands at $101.81 billion, making it one of the largest telecommunications firms globally. However, the decision to lay off staff marks its largest reduction in workforce to date.
CEO Daniel Schulman’s Initiatives
Daniel Schulman, who previously led PayPal for nearly a decade, expressed the need for Verizon to evolve. During a recent earnings call, he stated, “Verizon is at a critical inflection point.” He stressed the importance of enhancing operational efficiency to create sustainable shareholder value.
Despite a projected gain of 19,000 postpaid contracts for the third quarter, Verizon actually lost around 7,000 customers. This decline marks the third consecutive quarter of customer losses in this segment.
Outlook and Challenges
Schulman aims to implement strategies to reverse this trend. Analysts from Morgan Stanley cautioned that achieving these goals may be challenging. They noted that while improvements in performance are possible over time, it will require sustained effort and strategic adjustments.
Verizon’s cost-reduction efforts reflect a shift in focus towards efficiency as it navigates a competitive landscape. Schulman’s leadership will be crucial in determining the company’s future success.
