Verizon Communications is set to announce a job cut to improve its profit. Verizon has already held a meeting with customer service employees to notify them of upcoming restructuring and streamlining measures, The Verge reported.
The report said more than 6,000 employees have attended the meeting. The news report indicated that consolidation measures could end up impacting numbers far beyond that.
Verizon had approximately 117,100 employees on a full-time basis as of December 31, 2022, 89 percent of whom are based in the U.S., Verizon said in its annual report for 2022.
Verizon earlier reported net income of $5.0 billion in Q1 2023, an increase of 6.5 percent compared to first-quarter 2022, and adjusted EBITDA of $11.9 billion, a decrease of 1.1 percent year over year. The job cut indicates that Verizon is in a bad position to manage its business.
The New York-based Verizon will share more details about the job reduction today, the report said, citing a prerecorded message that employees received.
Verizon in April missed its first-quarter revenue and free cash flow estimates, hit by wireless subscriber losses as inflation-hit Americans delayed device upgrades and a pandemic-led growth boom fizzled out.
Verizon had lost 127,000 net monthly bill-paying wireless phone subscribers in the quarter.
