Verizon makes job cuts to stay competitive
- Jack Borys
- 4 hours ago
- 2 min read
Verizon (VZ) is making headlines with the anticipation of the carrier’s largest ever employment cut totaling roughly 15,000 jobs. Verizon is hoping that these job cuts will help the company reduce costs, a much needed boost due to the high competition with other telecommunication companies such as AT&T and T-Mobile.
Verizon is still the nation's largest telecom provider by subscriber base, but the number has been shrinking for some time now. For the last three quarters, Verizon has been losing subscribers as other companies persuade consumers with their plans. This past quarter alone, they have lost a net 7,000 consumer postpaid phone connection, a complete reversal from the 19,000 gain that Wall Street had forecasted. This is a result of consumers being cautious to purchase Verizon’s premium wireless plans.
The job cuts are a component of an overall strategy to reduce the company’s entire cost base, led by newly appointed chief executive officer, Daniel Schulman. Schulman, who previously held the CEO position at PayPal, has dealt with financial growth and transformation before, as shown through PayPal’s timeline. Schulman grew PayPal’s revenue from $8 billion to $30 billion during his tenure, and also expanded PayPal’s platform with millions of users. Verizon is hoping that their new CEO will be able to have the same effect on their current problematic situation.
For Verizon employees, most of the cuts will come in the form of layoffs, as the company looks to “slim down” and become more efficient. Schulman recently stated that Verizon needs to take the necessary steps to become, “simpler, leaner, and scappier.” This is a crucial step Verizon needs to take in order to maintain their position as the top telecommunications company in the sector. This is not a quick reversal for Verizon, but it is one that will help change the trajectory of company costs.
While the coming months will undoubtedly be challenging for Verizon and its employees, the company’s willingness to make bold structural changes reflects a long-term commitment to stability and competitiveness. Under Daniel Schulman’s leadership, Verizon’s strategy to streamline operations and reduce costs could position the company to adapt more effectively to an increasingly crowded telecom landscape. If successful, these difficult decisions may not only restore growth but also redefine Verizon’s role as an industry leader in the years ahead.
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