Verizon Reportedly Initiates More Than 13,000 Job Cuts, Store Restructuring

(RTTNews) - Verizon Communications Inc. (VZ) has initiated its planned more than 13,000 job cuts as part of its efforts to cut costs and restructure operations, reports said citing a CEO note to employees. The proposed cuts reportedly represents around 20% reduction in nonunion workforce.

The company also plans to convert 179 corporate-owned retail stores into franchised operations and close one store.

As per the note to employees by Verizon's new CEO Dan Schulman, the planned workforce reduction will be across the organization, which would significantly reduce outsourced and other outside labor expenses.

The affected employees will be notified starting Thursday.

Schulman reportedly said, "Our current cost structure limits our ability to invest significantly in our customer value proposition. We must reorient our entire company around delivering for and delighting our customers."

Media reported last week about Schulman's plan for a significant layoffs between 10,000 and 15,000 employees as early as this week. Meanwhile, it was anticipated that unionized employees, including those employed by a few company-owned retail establishments, will not be affected by the layoffs. By the end of 2024, Verizon employed just under 100,000 people.

The move comes after Verizon reported losing mobile subscribers for three straight quarters, lagging behind competitors in both customer growth and stock performance.

Verizon is facing fierce competition for both wireless-service and home-internet customers.