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More than half of these jobs will be cut this month, with the full total to be cut by March next year, according to the operator
Back in June, Verizon announced its intention to cut around 4,800 jobs as part of wider restructuring. This “voluntary separation program” would impact US-based management positions and see the company’s 105,400-strong workforce reduced by around 4.5%.
This week, the initial cost of the job cutting measures has been revealed, with Verizon facing a $1.9 billion pre-tax charge in Q3 related to severance pay.
The majority of the job cuts are expected to be implemented this month, with the remainder to be carried out until March 2025.
In addition to these cuts, the company also expects to record charges of $230 million to $380 million during the same period related to the company ceasing to use real estate assets and exiting non-strategic portions of certain businesses, according to reports.
Combined, these measures are expected to make up a large part of CEO Hans Vestberg’s plans to save Verizon up to $3 billion by 2025.
Verizon – alongside its competitors AT&T and T-Mobile – has been attempting to slimline its workforce for a number of years now, citing a highly competitive marketplace and a struggle for organic growth. Last year alone saw the company scrap over 6,600 jobs, with a large number of these jobs reportedly being shifted oversees.
In total, the company has reduce its headcount by around 34,000 since Vestberg’s inauguration in 2018.
It should be noted, however, that Verizon is not tightening the purse strings across the board – in fact, quite the opposite.
Earlier this month, Verizon signed a deal to purchase fibre network operator Frontier Communications for $9.6 billion. The deal, the largest in Verizon’s history, will add around 2.2 million broadband subscribers to its footprint in 25 states.
Vestberg described the deal as a ‘strategic fit’, arguing that growth in the broadband market would be more achievable compared to mobile.
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