Verizon Layoffs: US wireless announces more than 13,000 job cuts to shrink costs
US wireless carrier Verizon said on Thursday it would lay off more than 13,000 employees, the largest single layoff spurred by plans to cut costs and restructure operations.
The news was announced by Chief Executive Officer Dan Schulman in an email to all employees. Wall StreetJournal.
The internal message said the layoffs would begin with the layoff of 13,000 employees, the biggest move by the largest U.S. wireless carrier.
“Our current cost structure limits our ability to significantly invest in our customer value proposition,” Schulman said in a memo to employees.
“We must simplify our operations to remove the complexity and friction that slows us down and frustrates our customers,” the letter also says.
We must reorient our entire company to serve and delight our customers.
The Verizon CEO also said the company will significantly reduce its outsourcing and other outside labor expenses.
“We must reorient our entire company around serving and delighting our customers,” he wrote.
Layoffs at Verizon will cause the company to shrink up to 20% of its non-union workforce as Verizon moves to take a big step toward Schulman’s turnaround plan.
Verizon also said it plans to convert 179 company-owned retail stores into franchise operations and close one store. Verizon will still have 1,300 company-owned stores and more than 6,000 franchises, a spokesman said Bloomberg.
Verizon planned to cut 15,000 jobs
According to reports prepared by Reuters, Wall Street Journal et al., Verizon initially planned to lay off 15,000 employees. However, the company’s management has changed its mind since last week to reduce layoffs, WSJ reported, citing a source familiar with the matter.
Most of the layoffs will affect Verizon’s US employees. Reuters reported.
U.S. employees who receive the pink slip will be notified on Thursday, while some employees abroad will be informed about their status in the coming weeks. WSJ A person with knowledge of the matter was quoted as saying.
As of February, Verizon had about 100,000 employees in the U.S., according to securities filings. Most are non-union.
Verizon Layoffs: Is AI stealing jobs?
Verizon CEO Dan Schulman said the company is establishing a $20 million career transition fund for laid-off employees to focus on “opportunities and necessary skills as we enter the age of artificial intelligence.”
Verizon said the layoffs were not a result of the company’s use of artificial intelligence.
The wireless carrier is facing increasing market pressure over concerns about a shrinking pool of new customers as legacy rivals offer cheaper plans and cable operators enter the fray.
Since taking over as CEO in October, Schulman has pledged to “aggressively transform our culture, cost structure and Verizon’s financial profile to put our customers first, compete effectively and deliver sustainable returns to our shareholders.”
