Verizon announced they are laying-off more than 13,000 employees, including some at the retail store level. In addition, NWIDA has learned Verizon would like to convert a number of corporate owned stores to dealer stores.
The cuts, which began yesterday, were detailed in an internal memo from new CEO Dan Schulman. Verizon ended last year with nearly 100,000 full-time employees; the reductions are expected to impact about 20% of the carrier’s non-union management workforce.
Schulman told employees that Verizon’s current cost structure is limiting its ability to invest, especially in areas that impact customer experience. He said the company needs to simplify operations to remove “complexity and friction” that slow it down and frustrate customers.
Schulman called Verizon’s current trajectory a “critical inflection point” and pledged to “aggressively transform” operations rather than make incremental changes. In addition to internal headcount cuts, Verizon also plans to “significantly reduce” outsourced and other outside labor expenses.
This round of layoffs – first reported last week by The Wall Street Journal – is said to be the largest in Verizon’s history.
Verizon is establishing a $20 million “Reskilling and Career Transition Fund” for departing employees.
What independent dealers should watch
While the announced cuts are focused on management and broader corporate operations, moves like this often ripple down over time:
- Further centralization or self-service pushes that can reduce in-store traffic
- Potential shifts in how Verizon supports indirect channels versus corporate retail
- Reprioritization of customer “experience” that may or may not include independent dealers
We’ll keep an eye on how this restructuring translates into changes in dealer policies, compensation, and support – and what it may signal for Verizon’s long-term channel strategy.
If you’ve been impacted by the lay-offs, send your resume to resumes@nwida.net – we will forward it to companies who are hiring.
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