Verizon Communications is preparing to cut approximately 15,000 jobs in the United States, marking the largest workforce reduction in the company’s history, the Wall Street Journal exclusively reported Thursday. The cuts, which represent about 15 percent of Verizon’s roughly 100,000-strong U.S. workforce, are expected to begin within the next week.
Most of the job losses are planned as direct layoffs, while around 200 company-owned retail stores will be converted into franchised operations, shifting the affected employees off Verizon’s payroll. The company said that this move is part of a broader cost-reduction drive initiated by its recently appointed chief executive officer, Dan Schulman. Schulman, who took over the reins in early October, has emphasized the need to “be a simpler, leaner and scrappier business”.
Verizon’s announcement comes amid mounting competition in the wireless and home-internet markets, where the carrier has experienced subscriber losses for three consecutive quarters and has lagged behind key rivals. Analysts say the job cuts are intended to help Verizon streamline operations and reverse its recent performance slump.
The retailer-store conversion and workforce reduction signify a strategic pivot away from its legacy retail model and cost structure.
