Verizon Communications plans to eliminate about 15,000 jobs, its largest round of layoffs to date, as it moves to cut costs amid intensifying competition in wireless and broadband markets, according to The Wall Street Journal.
People familiar with the plan said most of the cuts are expected as soon as next week and will come primarily through layoffs rather than voluntary exits. Verizon also plans to turn about 200 of its own retail outlets into franchised stores. This will free up more employees from its direct payroll while preserving the brand in important markets.
Verizon shares rose about 1.5% in morning trading Thursday after the report, even as recent retail sentiment toward the stock has turned bearish. The company’s workforce stood at around 100,000 employees as of February, according to Verizon’s recent exchange disclosures, including Verizon’s SEC filings. According to Bull Fincher, the headcount has fallen from a peak of 177,700 workers in 2015, an almost 44% reduction over the past decade.
The latest cuts follow several quarters of slower-than-expected revenue growth as Verizon battles aggressive promotions from rivals in both wireless and fiber. Total third-quarter revenue came in at $33.8 billion, missing a consensus forecast of $34.27 billion, according to Fiscal AI data.
Despite the top-line miss, Verizon’s stock is up about 3% so far this year and 2.3% over the past 12 months, suggesting investors remain cautiously optimistic that the restructuring push and cost savings will eventually support profit growth.
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