Verizon to ax 15K jobs, or 15% of workforce: report | Latest Tech News
Verizon s planning to cut about 15,000 jobs in the telecommunications company’s largest ever layoffs as half of a restructuring under its new CEO, a particular person acquainted with the matter told GWN on Thursday.
The layoffs, affecting about 15% of its workforce, are set to happen as soon as next week, the particular person said.
Verizon’s shares rose about 1.4% on the news. They have largely stagnated over the last three years, with a gain of 8% in contrast with the S&P 500’s near-70% rise.
The layoffs, the biggest ever for the wi-fi provider and impacting about 15% of its workforce, are set to happen in the next week, GWN reported. REUTERS
A Verizon spokesperson declined to remark.
The cuts come after the telecommunications company named former PayPal boss Dan Schulman as its new chief government officer in early October.
The cuts are aimed at its non-union management ranks and will have an effect on more than 20% of that workforce, the source said. Verizon also plans to transition around 180 corporate-owned retail shops into franchised operations, the source added.
The Wall Street Journal reported the cuts earlier.
The cuts come after the telecommunications company named former PayPal boss Dan Schulman as its new chief government officer in early October. Evan Agostini/Invision/AP
Schulman said last month that Verizon understood it wants aggressive change including “cost transformation, fundamentally restructuring our expense base. … We will be a simpler, leaner and scrappier business.”
Schulman, who has served on Verizon’s board for seven years, has said he doesn’t need to hike costs and seeks to be more customer-focused. “Our financial growth has relied too heavily on price increases, a strategic approach that relies too much on price without subscriber growth is not a sustainable strategy,” he said last month.
Verizon had about 100,000 US workers at the end of 2024, according to its annual report.
Verizon is battling rising competitors as subscriber growth slows and cautious customers are unwilling to buy premium wi-fi plans.
Verizon has confronted mounting strain from rivals AT&T and T-Mobile US as the US wi-fi market matures.
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