Post by : Badri Ariffin

Verizon, one of the largest U.S. wireless carriers, is set to reduce its workforce by over 13,000 employees in its biggest layoff to date. The move comes as the company seeks to streamline operations and control costs amid growing market competition.

In addition to workforce reductions, Verizon plans to convert 179 corporate-owned retail stores into franchised outlets and close one location. The changes aim to simplify operations and enhance efficiency while addressing rising operational complexities.

The layoffs will affect multiple areas across the organization, including outsourced labor, as Verizon works to realign priorities. The company said it will establish a $20 million career transition fund to support employees in acquiring skills relevant to emerging technologies, including artificial intelligence.

This decision follows a challenging period for Verizon. The company added only 44,000 new monthly bill-paying wireless subscribers in the third quarter, trailing behind competitors AT&T and T-Mobile. Verizon has faced mounting pressure as rivals offer cheaper plans and cable operators expand into wireless services.

Over the past three years, Verizon has already cut nearly 20,000 jobs. The company also invested heavily to strengthen its network and market position, spending $52 billion in a 2021 auction to acquire key 5G spectrum, $20 billion to acquire Frontier Communications, and $6 billion to buy TracFone Wireless.

As Verizon navigates a highly competitive telecom landscape, these moves reflect a strategic effort to balance growth, cost efficiency, and innovation in the age of 5G and AI-driven services.

#Business News #Economic