Verizon (VZ) has begun a massive layoff process that is expected to impact more than 13,000 employees, including retail workers, customer service representatives, and some senior executives, most of whom are based in the U.S., multiple media outlets reported Thursday, citing an internal memo from new chief executive Dan Schulman.
The layoffs will reduce the size of the company’s non-union workforce by as much as 20%, and further restructuring is expected in the coming weeks, the media reports said. Only a few union-affiliated jobs will be impacted by the cuts.
“Our current cost structure limits our ability to invest significantly in our customer value proposition. We must reorient our entire company around delivering for and delighting our customers,” Schulman reportedly said in the memo.
The company plans to convert 179 corporate-owned retail stores into franchised operations and close one NYC store, the media reports said.
Most of the affected employees will be off the company’s payroll by the end of the year. The job cuts were not the result of the company’s use of AI, the reports said.
Verizon is also setting aside $20M for laid-off employees to focus on the “opportunities and necessary skill sets as we enter the age of AI,” Schulman reportedly said.