Verizon to Cut About 15,000 Jobs

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Telecommunications company is looking to reduce costs as it works to stem customer losses

The layoffs include shifting about Verizon 200 stores into franchise​s​, moving employees off ​the books.

Verizon Communications plans to cut roughly 15,000 jobs, its largest reduction ever, to reduce costs amid rising competition.
 

Verizon Communications VZ 1.47%increase; green up pointing triangle is planning to cut roughly 15,000 jobs, looking to reduce costs as it contends with increased competition for both wireless service and home internet customers, according to people familiar with the matter.

The cuts, the largest ever for the carrier, are set to take place in the next week, the people said. The majority of the reduction is expected to be made through layoffs. 

Verizon also plans to transition about 200 stores into franchised operations, which will shift employees off its payroll, one of the people said.

The company had about 100,000 employees as of February, according to securities filings.

Verizon, the largest U.S. telecommunications provider by subscriber base, faces a fierce battle in both wireless and home internet markets. It has lost crucial postpaid phone subscribers for three consecutive quarters, as other wireless companies pick off customers. In April, it began offering a price-lock guarantee for a swath of customers, though competitors have also since pushed similar promotions.

In the most recent quarter, Verizon lost a net 7,000 postpaid phone connections, while Wall Street analysts had forecast a gain of 19,000. AT&T and T-Mobile have both been growing those subscriber counts.

Last month, Verizon named its lead independent director Daniel Schulman as its new chief executive officer. Schulman, a former CEO of PayPal and Virgin Mobile USA, has said he would aggressively reduce the company’s entire cost base and take steps to reverse the customer losses.

“Verizon is at a critical inflection point,” he said last month in a call discussing the company’s third-quarter results.

The company has said it plans to exit or streamline legacy businesses that don’t offer clear paths to profitability, and will look to be a more nimble organization.

“We have a tremendous amount of opportunity to be more efficient, to be scrappier,” Schulman said. “Cost reductions will be a way of life for us here.”

Morgan Stanley analysts wrote in an October note that delivering Schulman’s vision in a mature U.S. telecom market would “not be easy or quick.” They said it is “possible—if not probable—that Verizon can improve operating and financial performance over time while remaining a rational actor in the marketplace.”

Verizon joins a wave of companies slimming down, with some finding tech-driven ways of improving efficiencies. Corporate giants including Amazon.com, United Parcel Service and Target have all announced job cuts in recent weeks.