Verizon's Bold Restructuring: 15,000 Jobs Cut to Streamline Business

Verizon plans to eliminate 15,000 jobs, equating to 15% of its workforce, as part of restructuring. The company aims to transition stores to franchises and focus on aggressive cost transformation. These changes follow Dan Schulman's appointment as CEO to tackle competition from AT&T and T-Mobile.

Verizon is set to cut approximately 15,000 jobs, a sweeping move as part of the company's restructuring plan, according to a source close to the situation. This layoff represents the largest in the wireless carrier's history and affects around 15% of its workforce, with job cuts expected in the coming week.

The announcement follows Verizon's appointment of Dan Schulman, former PayPal CEO, as its new chief executive officer earlier this month. Schulman emphasizes the need for aggressive changes, aiming to restructure Verizon into a more streamlined and customer-focused entity. A significant portion of the job cuts will impact non-union management, accounting for over 20% of that demographic. Additionally, the company plans to convert roughly 180 corporate-owned retail stores into franchised operations.

With Verizon battling rising competition from AT&T and T-Mobile amidst a maturing U.S. wireless market, the decision is part of a larger strategy to cut costs and foster a leaner, more agile business. Despite the job cuts news, Verizon's shares saw a 1.7% uptick. The company had about 100,000 employees in the U.S. by the end of 2024, as per its annual report.

(With inputs from agencies.)