Verizon Communications is getting ready for one of its biggest changes in years. The company may lay off up to 20,000 employees, or about 20% of its workforce, as part of a major transformation plan led by new CEO Dan Schulman.
Schulman, who took charge last month after previously heading PayPal, has been brought in to help Verizon regain lost ground in the wireless maarket. The company has faced several quarters of falling subscriber numbers and a stock performance that trails its main competitors.
Sources say Verizon will likely announce the job cuts next week. The final number is still being decided, but between 15,000 and 20,000 employees from all parts of the company could be affected.
Managers are expected to start telling affected employees in person next week. Most people leaving the company will be off Verizon’s payroll by the end of the year.
Verizon has many employees in New Jersey, Texas, Florida, and New York, so workers in these states could be hit hard. Some smaller offices might close if the cuts are deep.
Besides the job cuts, Verizon plans to turn 200 company-owned stores into franchises, according to the Wall Street Journal. This is part of Schulman’s plan to cut costs and restructure the company.
Verizon has lost subscribers for three quarters in a row, as more customers pick other wireless carriers. Schulman says the company needs a bold reset. He has promised to change Verizon’s culture, cut costs, and focus more on customers, while also improving long-term financial results.
As Verizon gets ready for these changes, both employees and investors are watching closely. In the next few weeks, it will become clear how many jobs are cut and whether Schulman’s plan can help the company recover.
