Core Insights - Verizon is planning to cut approximately 15,000 jobs, representing about 15% of its workforce, as part of a restructuring under new CEO Dan Schulman [2][4] - The layoffs are expected to primarily affect non-union management ranks, with over 20% of that workforce impacted [4] - Verizon's shares rose by about 1.4% following the announcement, although the stock has stagnated over the past three years, gaining only 8% compared to the S&P 500's nearly 70% increase [3] Company Strategy - The restructuring aims to address rising competition and slowing subscriber growth in the U.S. wireless market, where Verizon faces pressure from rivals AT&T and T-Mobile US [5] - Schulman emphasized the need for aggressive change, including cost transformation and restructuring the expense base, to create a simpler and leaner business [6] - The company plans to transition around 180 corporate-owned retail stores to franchised operations as part of its strategy [4] Financial Context - Verizon had about 100,000 U.S. employees at the end of 2024, having cut nearly 20,000 employees over the past three years [7] - The company has previously announced significant layoffs, including a reduction of 4,800 employees through a voluntary program last year, which incurred a nearly $2 billion charge [7] - Verizon has invested heavily in acquiring wireless spectrum and companies, spending $52 billion on C-band spectrum in a 2021 auction and $20 billion on Frontier Communications [9]

Core Viewpoint - Verizon is planning a significant layoff of approximately 15,000 employees, which represents 15% of its total workforce, marking the largest layoff in the company's history [1][3]. Group 1: Layoff Details - The layoff is set to begin next week and follows a trend where Verizon has reduced nearly 20,000 employees over the past three years [3]. - The new CEO, who took office in October, proposed this layoff plan to cut operational costs and improve efficiency [3]. Group 2: Business Context - Verizon currently employs about 100,000 people in the U.S. as of the end of 2024 [3]. - The company is transitioning its approximately 180 company-owned retail stores into franchised locations as part of its restructuring efforts [3]. Group 3: Market Position - Verizon is the largest telecom operator in the U.S. by user count, but it has faced stagnation in business growth due to a saturated market and increased competition [3]. - In the third quarter, Verizon reported operational revenue of $33.8 billion, which fell short of market expectations of $34.2 billion [3].

Core Viewpoint - Verizon Communications is planning to announce layoffs next week, potentially affecting 15,000 to 20,000 employees, marking the largest layoffs in the company's history [1][2] Group 1: Layoff Details - The layoffs could reduce the company's workforce by up to 20%, with approximately 100,000 employees as of February this year [1] - The layoffs are expected to impact employees across all levels and business units, particularly in New Jersey, Texas, Florida, and New York [1] - Verizon is also planning to convert 200 company-owned stores into franchise operations [1] Group 2: Leadership and Strategic Changes - The layoffs are part of a transformation led by new CEO Daniel Schulman, who took over in October [1] - Schulman emphasized the need for a cultural, cost structure, and financial model shift to prioritize customer needs and enhance competitiveness [1] Group 3: Market Competition - Verizon is facing intense competition in the wireless and broadband markets, leading to a continuous loss of postpaid mobile users for three consecutive quarters [2] - In the third quarter, Verizon experienced a net loss of 7,000 postpaid mobile users, contrary to analyst expectations of gaining 19,000 users [2] - Other major U.S. companies are also undergoing workforce reductions, with some leveraging technology to improve efficiency [2]

Core Insights - Recent layoffs across major companies indicate a significant shift in the business environment, particularly influenced by advancements in AI technology [1][3] - The scale of layoffs is unprecedented, with companies like Amazon, Target, UPS, Verizon, and Nestlé announcing substantial job cuts, totaling over 100,000 jobs [2][3] Company Layoffs - Amazon plans to eliminate 14,000 jobs, with further reductions anticipated as AI is integrated for efficiency [2][3] - Target is cutting 1,800 corporate jobs, marking its largest layoff in a decade, citing excessive layers and the need to accelerate technology [2][3] - UPS has reported a staggering 48,000 job eliminations this year, while Verizon and Nestlé will lay off 15,000 and 16,000 employees, respectively [2][3] Economic Context - The recent wave of layoffs does not correlate with a significant economic downturn, as growth is expected to increase next year according to economists [2] - Traditional layoff seasons typically occur in December and January, suggesting that the current trend may be driven by factors beyond seasonal adjustments [2] AI Influence - The integration of AI is a primary driver behind the layoffs, with executives openly discussing the need for efficiency gains and reduced workforce [3] - Companies are adopting a "Human Capital Lite" model, where having fewer employees is increasingly viewed as a positive attribute among Fortune 500 CEOs [3]

Exclusive: Daniel Schulman, the new CEO of Verizon, plans major cost cuts after the board soured on the network-first focus of his predecessor, Hans Vestberg https://t.co/lebqrZr7Lw ...

Core Insights - The company's board has expressed dissatisfaction with Hans Vestberg's network-first strategy, leading to a change in leadership [1] - The new CEO is planning significant cost reductions to realign the company's focus and improve financial performance [1] Company Strategy - The shift in leadership indicates a strategic pivot away from the previous CEO's approach, suggesting a need for a more balanced strategy that may include operational efficiency [1] - Major cost cuts are anticipated, which could impact various departments and operational areas within the company [1] Financial Implications - The planned cost reductions are expected to enhance the company's financial health, potentially leading to improved margins and profitability in the long term [1] - The board's decision reflects a critical assessment of past performance and a desire to implement changes that could stabilize or grow the company's market position [1]

Market Overview - On November 13, US stock indices collectively declined, with the Dow Jones falling by 797.60 points (1.65%) to close at 47,457.22 points, the Nasdaq dropping by 536.10 points (2.29%) to 22,870.36 points, and the S&P 500 decreasing by 113.43 points (1.66%) to 6,737.49 points [5] - European stock indices also experienced declines on November 13, with the FTSE 100 down by 103.74 points (1.05%) to 9,807.68 points, the CAC 40 down by 8.75 points (0.11%) to 8,232.49 points, and the DAX down by 339.84 points (1.39%) to 24,041.62 points [5] International Macro - The US government ended its longest shutdown in history, lasting 43 days, after President Trump signed a temporary funding bill on December 12 [7] - The release of the US October CPI data, originally scheduled for November 13, was postponed, and the upcoming employment report will lack unemployment rate data due to the shutdown [7] - Several Federal Reserve officials expressed caution regarding further interest rate cuts, leading to a decrease in market expectations for a rate cut in December, with the probability now at approximately 50%, down from 70% the previous week [7] Corporate News - Elon Musk's AI company xAI reportedly raised $15 billion in funding, increasing its valuation to $200 billion, although Musk later claimed the news was false [8] - Verizon Communications is planning to lay off approximately 15,000 employees, marking the largest layoffs in the company's history, in response to increasing competition in the wireless and broadband markets [8]

Core Viewpoint - Verizon Communications plans to implement its largest workforce reduction in history, laying off approximately 15,000 employees to address increasing market competition and reduce costs [1] Group 1: Company Actions - The layoffs and the transition of some stores to a franchise model are key measures taken by new CEO Daniel Schulman to reverse the trend of customer loss and improve company efficiency and financial performance [1] Group 2: Market Analysis - Morgan Stanley analysts believe that achieving Schulman's goals will be challenging in the context of a mature U.S. telecommunications industry, but there is potential for Verizon to enhance its operational and financial performance in the long term [1]

Sources told The Wall Street Journal (WSJ) that in the name of reducing costs, Verizon Communications plans to cut about 15,000 jobs within the coming week.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.According ...

Core Viewpoint - Verizon Communications is planning to cut up to 15,000 jobs as part of a cost-cutting initiative led by new CEO Dan Schulman to enhance competitiveness and operational efficiency [1][2]. Group 1: Job Cuts and Cost-Cutting Strategy - The job cuts are expected to begin soon and will primarily affect non-unionized positions across all segments of the company [1]. - Schulman aims to make Verizon "more agile and efficient" and has indicated that the company will be a "simpler, leaner and scrappier business" [2][4]. - The cost reductions will fund significant investments in marketing and customer experience to drive growth in mobility and broadband [4]. Group 2: Market Position and Competition - Verizon is facing sluggish customer growth and increasing competition from AT&T and T-Mobile, necessitating a strategic shift [4][6]. - Analysts have noted that competition among major wireless carriers is intensifying, with aggressive promotions being rolled out to attract new customers [10][11]. - Verizon is projected to face the steepest challenges in increasing its number of postpaid phone customers by 2025 compared to its competitors [11]. Group 3: Financial Strategy and Customer Focus - Schulman has criticized the company's previous reliance on price increases for financial growth, stating that this is not a sustainable strategy [6]. - A shift towards a customer-first culture is expected to create a more efficient cost structure while enhancing customer experience [8]. - Schulman believes that the industry, including Verizon, has significant potential for improved bottom-line performance [9].