Verizon, one of the world’s largest telecommunications companies, has announced plans to cut approximately 15,000 jobs as part of a restructuring initiative under its new CEO. The layoffs will impact about 15% of its employees, marking the largest workforce reduction in the wireless carrier’s history.
The cuts, following the appointment of former PayPal boss Dan Schulman as CEO in early October, are aimed at non-union management ranks and are expected to affect more than 20% of that workforce, according to a source. Verizon also plans to transition around 180 corporate-owned retail stores into franchised operations, the source added.
A Verizon spokesperson declined to comment.
Verizon’s shares rose about 1.4% on the news. They have largely stagnated over the last three years, with a gain of 8% compared with the S&P 500’s near-70% rise.
Verizon is battling rising competition as subscriber growth slows and cautious consumers are unwilling to buy premium wireless plans. It has faced mounting pressure from rivals AT&T and T-Mobile as the U.S. wireless market matures.
“We will invest significantly across all elements of our marketing mix and customer experience to drive mobility and broadband growth, and we will fund these investments by aggressively reducing our entire cost base,” Schulman said, according to Fox Business.
“We will be a simpler, leaner and scrappier business. This work is overdue and will be multi-year and an ongoing way of life for us,” he added.
The cuts are expected to begin as soon as next week.
Verizon had roughly 100,000 employees at the end of fiscal year 2024.