Verizon Confirms Its Largest-Ever Layoff: Over 13,000 Employees Reportedly Affected In Restructuring Drive

• According to Verizon CEO Dan Schulman’s internal memo to employees, the company will reportedly begin notifying the affected employees starting Thursday.
• Verizon’s layoffs are said to cut the company’s labor costs for non-union employees by nearly 20%.
• Schulman was named Verizon’s CEO in October, replacing Hans Vestberg, after serving on the company’s board since 2018.

Verizon Communications Inc. (VZ) reportedly confirmed its largest-ever round of layoffs on Thursday amid an ongoing restructuring drive to cut costs.

According to a report by The Wall Street Journal citing an internal memo sent by Verizon CEO Dan Schulman to employees, the company will begin notifying the affected employees starting Thursday.

A Reuters report stated that a Verizon spokesperson confirmed the layoffs, calling it an “opportunity for Verizon to reset, restructure, and realign our priorities on ways that will help us regain our leadership as a communications provider.”

Verizon shares were down by 0.3% in Thursday’s pre-market trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory at the time of writing.

Reorienting Verizon

In his memo to employees, Schulman reportedly said Verizon needs to be reoriented to become a customer-centric company.

“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,” he said, according to the WSJ report.

According to the report, Verizon’s layoffs will cut the company’s labor costs for non-union employees by nearly 20%.

Schulman’s Vision

Schulman was named Verizon’s CEO in October, replacing Hans Vestberg, after serving on the company’s board since 2018.

In terms of subscribers, Verizon is the largest U.S. telecom provider, with over 146 million retail connections at the end of the third quarter (Q3).

Schulman stated that he plans to reverse a recent trend of customer losses across both the wireless and home-internet categories, according to the report.

VZ stock is up 3% year-to-date, but down 2% over the past 12 months.

Also See: Nvidia Says Its 6-Year Old A100 Chips Are Running At Full Tilt, Countering Michael Burry’s Depreciation Warning

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