lucadelladora – Verizon is preparing to lay off more than 13,000 employees, a move confirmed by CEO Dan Schulman. This decision is part of a broader plan to restructure the company and reduce costs. According to Schulman, the layoffs aim to streamline operations. Reduce outsourcing, and cut back on external labor expenses in order to “build a stronger Verizon.” The company will also convert 179 of its retail stores into franchised locations and close one additional store as part of its downsizing efforts.
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This restructuring follows a series of job cuts at Verizon over the past few years. As of September, the company employed around 100,000 full-time workers. Meaning the latest round of layoffs represents about 13 percent of its workforce. In the previous three years, Verizon had already reduced its headcount by approximately 20,000 employees. The company’s new strategy is designed to help it cope with growing competition in the telecom market and the challenges it faces due to a decline in postpaid wireless customers.
Schulman, who joined Verizon in October after serving as the CEO of PayPal. Emphasized the importance of making bold, decisive moves to reposition Verizon at a critical juncture in the company’s history. In an earnings call last month, he stated that Verizon would take “fiscally responsible action” to redefine the company’s trajectory. Describing the upcoming changes as more than incremental adjustments.
Verizon’s $20 Million Fund and Focus on AI-Driven Reskilling
Alongside the layoffs, Verizon is launching a $20 million reskilling and career transition fund to help displaced workers prepare for the next phase of their careers. The fund will focus on skill development, digital training. And job placement, offering support to employees as they transition to new roles. Schulman highlighted that this initiative marks Verizon as the first company to establish a fund specifically aimed. At providing opportunities for workers entering the age of artificial intelligence.
The goal of the fund is to equip employees with the necessary skills to thrive in a rapidly changing job market. Verizon acknowledges the need for a workforce that is not only adaptable to technological advancements but also able to capitalize on opportunities in the AI-driven economy. As part of the restructuring, the company plans to simplify its operations and focus on delivering greater value to its customers. Schulman described this as part of a larger effort to build a more agile, customer-centric organization.
Verizon’s focus on creating a leaner, more efficient business comes at a time when the telecom industry is undergoing significant shifts. The company is also preparing to close its $20 billion acquisition of Frontier Communications early next year. A move that will expand Verizon’s footprint and services. However, the success of this acquisition will depend on how well the company can implement its new strategy. And streamline its operations to stay competitive in an increasingly crowded market.
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The layoffs and restructuring represent a pivotal moment in Verizon’s journey, and the company’s future success will hinge on how effectively it can adapt to changing market conditions while supporting its workforce through these transitions.
