Verizon Announces Largest-Ever Downsizing, Cutting 15,000 Jobs
NEW YORK – verizon is initiating a sweeping restructuring that will eliminate approximately 15,000 positions, representing 15% of its 100,000-person workforce, the company confirmed Thursday. The cuts, slated to begin next week primarily through voluntary departures and downsizing, mark the largest reduction in force in Verizon’s history.
The move comes just weeks after Dan Schulman,formerly CEO of PayPal,replaced Hans Vestberg as Verizon’s chief executive on November 13th.Schulman has signaled a need for “aggressive” changes, including a “fundamental restructuring of the cost base,” according to Reuters. He has publicly stated the company’s reliance on price increases for financial growth is unsustainable without corresponding subscriber growth. “Our financial growth has been too dependent on price increases. A strategic approach that is too dependent on price without subscriber growth is not a sustainable strategy,” Schulman said.
Beyond workforce reductions, Verizon plans to franchise 200 of its retail locations, further reducing employee headcount. The restructuring reflects a critical juncture for the telecom giant, which, despite being the largest US operator by subscriber count, faces intensifying competition in both the mobile and internet sectors.
“Verizon is at a critical inflection point,” Schulman said, according to the Wall Street Journal.
investors reacted positively to the news,with Verizon shares rising 1.3% on Thursday.
