Verizon to eliminate 5,000 employees in nearly $2B cost-cutting move

Verizon Communications Inc. plans to cut nearly 5,000 jobs as part of a $2 billion cost-reduction strategy. The company anticipates a pre-tax charge of up to $1.9 billion in the third quarter due to these layoffs, which will primarily affect management positions. A voluntary separation program was initiated in June, with over half of the affected employees expected to leave by September and the remainder by March 2024. In addition to job cuts, Verizon is restructuring its operations by divesting from certain real estate assets and exiting non-strategic business areas, which will incur additional pre-tax charges of $230 million to $380 million. The company is also focusing on expanding its fiber-optic network, recently agreeing to acquire Frontier Communications for $9.6 billion, which will add 2.2 million fiber subscribers. Furthermore, Verizon is considering selling thousands of mobile-phone towers, potentially generating over $3 billion in cash. Despite a recent decline in operating revenue due to fewer wireless equipment upgrades, Verizon's stock has risen 15% this year.

- Verizon is cutting nearly 5,000 jobs as part of a $2 billion cost-cutting initiative.

- The company expects to incur pre-tax charges of up to $1.9 billion in the third quarter.

- A voluntary separation program was launched for management positions, with layoffs occurring through March 2024.

- Verizon is expanding its fiber-optic network and has agreed to acquire Frontier Communications.

- The company is exploring the sale of mobile-phone towers to raise additional funds.