Verizon to record Q3 severance charge of up to $1.9B

Verizon (NYSE:VZ) expects to record a severance charge in the range of $1.7B-$1.9B ($1.3B-$1.4B after-tax) in the third quarter of 2024 related to a previously announced voluntary separation program, the telecoms firm said in a regulatory filing on Thursday.

In June 2024, Verizon announced a voluntary separation program for select U.S.-based management employees.

Around 4,800 eligible employees will separate from Verizon (VZ) by the end of March 2025 under this program, with over half of these employees exiting this month.

The carrier also plans to cease use of certain real estate assets and exit non-strategic portions of certain businesses as part of its continued transformation initiatives.

As a result of these strategic actions, the company expects to record asset and business rationalization charges in the range of $230M-$380M ($170M-$290M after-tax) in Q3.

Shares of Verizon (VZ) were down 0.59% as of 10.58 A.M. ET on Thursday.