Verizon weighs up to 20,000 layoffs as new CEO Dan Schulman takes charge

By Kelcee Griffis

 

Verizon Communications Inc. is discussing plans to announce job cuts next week that could downsize the company by as much as 20 per cent, according to people familiar with the wireless carrier’s plans, a major step in a transformation led by new Chief Executive Officer Dan Schulman. 

 

The size and scope of the potential layoffs are still being discussed, but they could impact 15,000 to 20,000 workers, the people said. Verizon has about 100,000 employees. The planned cuts are part of an aggressive strategy that Schulman recently unveiled to reclaim market share. 

 

The dismissals are expected to extend to employees at every level and in all parts of the business. The goal is to notify affected employees with in-person manager conversations beginning next week. The bulk of the laid-off employees would be off Verizon’s payroll by the end of year.

 

Verizon has sizable pockets of workers across the states of New Jersey, Texas, Florida and New York. Some smaller offices could be closed if they’re considerably impacted by downsizing.

 

The company is also planning to convert 200 company-owned stores to franchises, the Wall Street Journal reported. 

 

The former CEO of PayPal Holdings Inc. was appointed last month to replace Hans Vestberg after two consecutive quarters of subscriber declines and a stock performance that has lagged Verizon’s two main rivals. Verizon reported a third consecutive decline in mobile subscribers in the third quarter. Schulman pledged to “aggressively transform our culture, our cost structure, and the financial profile of Verizon in order to put our customers first, compete effectively, and deliver sustainable returns for our shareholders.”