Verizon To Cut Up To 15,000 Jobs In Its Largest Layoff to Date – Restructuring Begins Next Week: Report

• According to a report by The Wall Street Journal, Verizon plans to cut roughly 15,000 employees, its largest layoff in its history.
• About 200 retail stores will transition to franchise operations, reducing staff further.
• The company has seen its workforce decline nearly 44% since 2015.

Verizon (VZ) is reportedly set to reduce its workforce by approximately 15,000 employees as it works towards cutting costs, as competition in the wireless services sector continues to weigh on the telecom giant.

People familiar with the matter told The Wall Street Journal that most of the job cuts are expected to occur next week and will be primarily implemented through layoffs. The report said this is the largest set of layoffs to occur at the company to date. The company is also reportedly planning to convert approximately 200 retail stores into franchised operations, a move that will result in the reduction of additional employees from its payroll.

Verizon’s stock gained 1.5% in morning trade on Thursday. However, retail sentiment around the telecommunications giants trended in ‘bearish’ territory over the past day. 

Decade-Long Workforce Decline

The report stated that Verizon had approximately 100,000 employees as of February, according to its exchange filings. Data on Bull Fincher shows that the company’s workforce has steadily decreased from a peak of 177,700 employees in 2015, representing an almost 44% reduction over the past decade.

Verizon’s Struggles

The ongoing workforce reductions come amid slower-than-expected revenue growth in several quarters, largely due to aggressive competition in both wireless and fiber markets. The company’s third-quarter (Q3) revenue of $33.8 billion missed the analysts’ consensus estimate of $34.27 billion, according to Fiscal AI data. 

VZ’s stock has gained 3% this year and around 2.3% over the last 12 months.

Read also: Circle Stock Gains Pre-Market After JPMorgan Turns Bullish, Cathie Wood’s Ark Invest Buys The Dip

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