US Verizon Plans to Cut Up to 20,000 Jobs

Bloomberg News reported on the 14th that Verizon Communications Inc. is discussing announcing layoffs as early as next week. These job cuts could affect 15,000 to 20,000 employees, marking the largest layoffs in the company's history.

The report cited informed sources stating that these layoffs are a key step in the corporate transformation led by new CEO Daniel Schulman. The reductions could shrink the company's workforce by up to 20%. Securities filings show that the company had approximately 100,000 employees as of February this year.

The sources expect the layoffs to affect employees across all levels and business units. Verizon has a significant number of employees in New Jersey, Texas, Florida, and New York. If the layoffs significantly impact these regions, some smaller branches might be closed.

Schulman, former CEO of PayPal Holdings Inc., succeeded Hans Vestberg as Verizon's CEO in October. Prior to this, Verizon's released third-quarter financial report showed a decline in its mobile subscriber count for three consecutive quarters.

Schulman said during the October earnings call: "Verizon is at a critical inflection point." He pledged to "aggressively transform the company's culture, cost structure, and financial model to prioritize customers, compete effectively, and deliver sustainable returns to shareholders."

The Wall Street Journal reported that as the telecom operator with the largest number of subscribers in the US, Verizon faces intense competition in both wireless communications and home broadband markets. As other carriers continuously attract its customers away, Verizon has experienced a loss of significant postpaid phone subscribers for three consecutive quarters.