Under a restructuring plan from new CEO Dan Schulman, Verizon is planning to cut roughly 15,000 jobs in an effort to reduce operational costs.
Reuters reported the job cuts are the operator’s largest to date. The news agency stated the layoffs will trim Verizon’s headcount by about 15 per cent, starting next week.
Reuters stated the job reductions are targeting non-union management and will impact more than 20 per cent of those employees. It also noted Verizon plans to transition about 180 corporate-owned retail stores into franchised operations.
During last month’s Q3 earnings call, Shulman stated the company was “going to take bold and fiscally responsible action to redefine Verizon’s trajectory,” which includes transforming its cost structure and financial profile while shifting “to a customer-first culture”.
“We will be a simpler, leaner and scrappier business,” he stated on the earnings call. “This work is overdue and will be multi-year and an ongoing way of life for us”.
Analyst view
Roger Entner, founder and analyst at Recon Analytics, told Mobile World Live Verizon has two options for hitting its guidance: increasing revenue or cutting costs.
“Increasing revenue would mean another price increase on their customers which would continue the death loop that Verizon has to break out of”, he said. “Therefore, the only option is to cut cost and a lot of that will come from headcount reductions”.
Source: Mobile World Live
Image Credit: Verizon
