Verizon will eliminate 13,000 jobs and “significantly reduce” its outsourced and other outside labor expenses, according to a Nov. 20 letter to employees from Verizon CEO Dan Schulman, who was appointed to the role just last month. The telecom retailer also plans to convert 179 owned Verizon stores into franchised operations and close one store, according to CNBC.
“Our current cost structure limits our ability to invest significantly in our customer value proposition,” Schulman wrote, noting that “every part of the company will experience some level of change.”
Verizon faces stiff competition from rivals AT&T and T-Mobile, which are heavily promoting new iPhone models with aggressive discounts and trade-in deals. Verizon lagged its competitors in adding monthly bill-paying wireless subscribers in Q3, according to CNBC.
Recognizing that some of the job cuts are due to technological shifts, Verizon is establishing a $20 million Reskilling and Career Transition Fund for employees departing the company, focusing on skill development, digital training and job placement “to help our people take their next steps,” Schulman wrote.
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