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Verizon Axes 13,000 Jobs in Major Restructuring
21 Nov
Summary
- Verizon is eliminating over 13,000 jobs, about 13% of its workforce.
- The telecom giant faces shrinking customer numbers and intense competition.
- New CEO aims to cut costs and reverse subscriber losses.
Verizon is undergoing a substantial workforce reduction, with its CEO announcing the elimination of over 13,000 positions. This move, impacting roughly 13 percent of the company's employees, is part of a broader strategy to 'evolve as a company' by curtailing expenses and reorganizing operations. The telecom giant is facing intense pressure from rivals AT&T and T-Mobile, leading to a steady loss of subscribers.
The company's recent performance has been hampered by shrinking customer bases and aggressive pricing from competitors. In the first quarter, Verizon reported losing 289,000 monthly wireless customers, a figure more than double that of the previous year. This exodus is attributed to recent price increases and scaled-back discounts, a stark contrast to the continuous promotional activities of its rivals.
This shake-up follows the recent appointment of Daniel Schulman as the new CEO. Schulman, formerly of PayPal and Virgin Mobile USA, has vowed to significantly slash costs across the organization and reverse the decline in wireless customers. He emphasizes a new era of efficiency, stating that 'cost reductions will be a way of life' for Verizon moving forward.
