The American telecommunications operator Verizon has announced this Thursday its intention to carry out a broad workforce adjustment that will begin with the cutting of more than 13,000 jobs, according to a message to the company's employees from the new CEO, Dan Schulman, accessed by Bloomberg, as reported by Europa Press.
"Our current cost structure limits our ability to invest significantly in our value proposition for the customer," Schulman stated in the letter.
The layoffs would affect employees at all levels and areas of the operator, including store personnel, customer service representatives, and some senior executives. Most of the affected employees will no longer be part of Verizon's workforce by the end of the year.
Schulman, who previously served as CEO of Paypal, took over the reins of Verizon last October, replacing Hans Vestberg after two consecutive quarters of subscriber declines and poor stock performance compared to its competitors, committing to turning the company into a "simpler and more efficient" business.
Additionally, the company will establish a $20 million fund to help employees acquire new skills if they wish, including professional retraining for a labor market affected by the rise of AI.
Verizon has approximately 100,000 employees nationwide, with about a third represented by the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW). Verizon stated that few of these employees will be affected by the layoffs.
Aside from the workforce, the company is also evaluating its real estate portfolio following the reduction in personnel and may close some offices, in addition to transforming 179 company-owned stores into franchises and closing a store in New York City.