New Delhi: Verizon Communications has kicked off its biggest layoff wave in company history. They are notifying employees that more than 13,000 jobs will be cut. The decision comes as new CEO Dan Schulman pushes an aggressive cost-cutting strategy to help the telecom giant recover from recent customer losses and strengthen its position for long-term growth.
Layoff Notices Begin Amid Tough Market Competition
An internal email reviewed by The Wall Street Journal reveals that Verizon will begin informing U.S. employees about the layoffs starting Thursday, with international staff expected to receive notifications in the coming weeks. The cuts come as the company faces stiff competition in both the wireless and home-internet markets, where rivals like AT&T and T-Mobile have been steadily gaining subscribers while Verizon has fallen behind.
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The U.S. economy added 119,000 jobs in September, far exceeding the Reuters forecast of around 50,000 and bouncing back from a revised loss of 4,000 jobs in August. July’s job gains were also revised down by 7,000 to 72,000, signaling that overall hiring this year has been softer than earlier estimates but still growing.
Verizon Prepares for Its Biggest Job Cuts Ever
Verizon, which had about 100,000 employees as of February, is moving ahead with its largest layoff plan to date. The cuts are expected to reduce labor costs for nonunion staff by nearly 20 per cent, according to a person familiar with the matter. As per Times now, earlier reports suggested around 15,000 jobs might be eliminated but the final number was scaled back slightly after internal reviews. Along with shrinking its workforce, the company also plans to cut expenses on contractors and outsourced work as part of a wider effort to streamline operations and boost profitability.
Verizon Struggles to Keep Customers Amid Rising Competition
Once the clear leader in U.S. telecom, Verizon has been slipping in recent quarters. Instead of posting the expected gain of 19,000 postpaid phone subscribers, the company lost about 7,000 customers. Meanwhile, rivals AT&T and T-Mobile continue to add users, increasing the pressure on Verizon to rethink its strategy and win back market share.
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