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Verizon Communications plans to cut up to 15,000 jobs this month as Chief Executive Officer Dan Schulman launches an aggressive cost-cutting drive to make the company a leader.
The layoffs, expected to begin as soon as next week, will primarily affect negative positions in all branches of the company, a source familiar with the matter told Fox Business.
Rich Rich, a spokesperson for Verizon, said nothing has been finalized and that the company is not commenting on rumors or speculation.
Verizon names former PayPal executive Dan Schulman as CEO
However, the cuts are in line with Schulman’s plans to keep the company focused on the market. He told investors during an earnings call at the end of October that the company is redefining how it’s working to “make Verizon more agile and efficient.”
The layoffs are expected to begin next week. (Kena Betancur / ViewPress)
“We will invest heavily in all elements of our marketing mix and customer experience to drive broadband traffic and growth, and we will support this investment by reducing our overall costs,” Schulman said. “We’re going to be a simpler, leaner and scrappier business. This project is over and it’s going to be a one-year and ongoing lifestyle for us.”
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Schulman, the former CEO of PayPal, was hired in October to help reconcile experts on sluggish customer growth and competition from AT&T and T-Mobile. His primary goal is to drive profitable expansion of Verizon’s customer base across its wireless and broadband businesses.
The cuts come after the last chief executive. (Pau Barrena/AFP via Getty Images)
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Schulman, who has served on Verizon’s board for seven years, told analysts in October that the company’s financial growth depends too much on price without subscriber growth is not a sustainable strategy. ”
“Every year, it becomes difficult to grow as we increase the previous price and get high churn. This cannot continue,” he said.
Dan Schulman served on Verizon’s board for seven years. (Erik McGregor/Lightstrack via Getty Images)
The transition to a First Team culture will simultaneously drive a more efficient cost structure that will support the company’s additional investment to enhance the customer experience, Schulman told investors. He also rejected the premise that focusing on customer satisfaction will hurt profit margins.
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“I think this industry and obviously, Verizon is only scanning the top of the bottom line,” he added.
| It’s teasing | Security | – Last | Answer | change % |
|---|---|---|---|---|
| Vz | Verizon Communications Inc. | 41.31 | +0.51 |
+ 1.24% |
| The cause | T-mobile US Inc. | 215.56 | +2.88 |
+ 1.35% |
| T | AT & T Inc. | 25.80 | U +0.13 |
+ 0.51% |
Wells Fargo Analysts said in an October survey of Nganu Competition among wireless carriers – Verizon, AT & T, and T-Mobile – is strengthening the growth of subscriptions.
To stay competitive, analysts say companies are rolling out aggressive promotions, including free phone offers to attract new customers.
Analysts see that Verizon will face a major challenge in increasing its number of phone customers sent in 2025, while AT & T and Mobile are more likely to meet their milestones.
