Verizon Layoffs: US-Based Telecom Giant to Cut Nearly 5,000 Jobs amid Cost-cutting and Reorganisation
American telecommunication giant Verizon will lay off around 5,000 employees, half of which will be laid off in September 2024. The Verizon layoffs, initiated as a part of reorganisations and cost-cutting measures, will reportedly end by March 2025.
New York, September 16: Verizon Communications, a US-based telecommunication giant, will reportedly lay off around 5,000 employees by March 2025. The telecom company said half of the employees would be laid off in September 2024. Verizon layoffs would reportedly affect around 4.5% of the total staff employed by the company.
According to a report by MarketWatch, Verizon said on Thursday that it expected charges of up to USD 1.9 billion in the third quarter, which was in connection with employee buyouts. The report further highlighted that around 4,800 employees would be affected by the Verizon layoffs under the voluntary separation program. Microsoft Layoffs Continue: Tech Giant Cutting 650 Jobs in Its Xbox Gaming Division, Lays Off Over 2,500 Employees Since Acquiring Activision Blizzard.
The employees affected by the Verizon job cuts would be allowed severance payments, which the company said would range around USD 1.7 to USD 1.9 billion or around USD 1.3 to USD 1.4 billion after tax deductions in Q3. Verizon Communication confirmed that it employed 1,05,000 people as full-time employees as of December 2023.
Out of its workforce of nearly 1.05 lakh, the company said over 89% were based in the United States. The telecom giant encouraged workforce reduction with the help of Verizon's voluntary separation program, which was introduced in June. Following this program, Verizon also started offering incentive payments to employees who left the company.
Verizon layoffs have been implemented across various departments amid cost-cutting measures as part of an internal reorganisation strategy. The decision initially reported to impact 4,800 planned employees may even go beyond the 5,000 mark in the coming month, said the report. This month, half of the jobs will be cut, and the headcount will be reduced in the following months. Samsung Global Layoffs: Tech Giant To Reduce 30% of Its Overseas Workforce, Lay Off Around 1,000 Employees in India.
Verizon's stock was expected to rise to 16%; however, it fell short of achieving the 15% mark. On the other hand, the stocks of T-Mobile and AT&T were 25.1% and 25.2% higher. Earlier this month, the US-based telecom giant announced its plan to buy Frontier Communications Parent Inc. for USD 20 billion in a cash deal.
(The above story first appeared on LatestLY on Sep 16, 2024 09:47 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).