Verizon to Slash 15,000 Jobs as New CEO Prioritizes Cost Reduction
Verizon, a leading telecommunications provider, is set to reduce its workforce significantly as part of a new cost-cutting strategy. Following the appointment of its new CEO, Daniel Schulman, the company plans to eliminate approximately 15,000 jobs within the next week. This decision marks the largest job reduction in the company’s history.
Financial Overview and Job Cuts
Verizon reported operating revenue of $101.81 billion this year. However, it faces intensified competition in the telecommunications market. According to sources cited by The Wall Street Journal, the company is not only focusing on layoffs but will also transition about 200 stores to franchise operations, resulting in additional job losses.
Employee Statistics
As of the end of 2024, Verizon employed around 99,600 full-time equivalent staff. The upcoming cuts reflect the company’s urgent need to streamline operations and enhance profitability.
Challenges in Customer Retention
Verizon’s struggles extend beyond job cuts. In the third quarter, the company lost around 7,000 postpaid mobile phone lines, which was contrary to Wall Street’s expectations for a 19,000 increase. This marks the third consecutive quarter of subscriber losses, as competitors like AT&T and T-Mobile report significant gains.
CEO Daniel Schulman’s Vision
Daniel Schulman, formerly with PayPal and Virgin Mobile USA, emphasized the importance of efficiency in his recently expressed vision for Verizon. He stated, “The only way we can drive sustainable value for our shareholders is by significantly raising our game and winning responsibly in the market.” This indicates a strategic shift aimed at reversing customer losses and delivering long-term growth.
Conclusion
Verizon’s job cuts of 15,000 positions underscore its critical need to adapt in a rapidly evolving market. With Schulman at the helm, the focus will be on achieving greater operational efficiency and ultimately restoring customer trust and subscriber growth.
