Verizon Employees Brace for Layoffs as Company Announces Restructuring

In a move that has sent shockwaves through its customer service workforce, Verizon held a meeting on Wednesday to announce imminent “restructuring” and “streamlining” efforts that are expected to result in significant layoffs. With more details set to be unveiled on May 25th, the news has left over 6,000 employees who were present on the call in a state of uncertainty, and the impact is likely to extend far beyond that initial number.

This development comes just a month after Verizon reported disappointing Q1 ’23 earnings, falling short of Wall Street estimates due to a continuing decline in its subscriber base. The company saw a loss of 127,000 postpaid subscribers during the quarter. In March, Sowmyanarayan Sampath was appointed as CEO of Verizon Consumer Group, the division responsible for overseeing customer service operations.

During the call, employees were informed that they would have the option to accept a severance package (two weeks of pay per year of tenure) or, in certain cases, apply for positions related to customer experience, loyalty, and technology, which would allow them to “transition to the next stage of [their] career journey.” However, it should be noted that applying for new roles does not guarantee employment. Those who opt not to take the severance offer can expect to hear about their future at the company on June 23rd, while the deadline for decisions is June 7th.

Some discussions on the Verizon subreddit suggest that these measures may be a precursor to further outsourcing of after-sales service and customer support to overseas vendors. Reports indicate that Verizon has significantly reduced domestic hiring for customer service positions, raising concerns among employees.

These developments follow Verizon’s recent announcement of revamped cellular plans, which received a lukewarm response from customers due to the removal of premium services like Apple Music and the Disney Bundle. Facing stagnant revenues, carriers are striving to monetize the 5G network in various ways after years of promoting its faster technology. Verizon plans to activate C-band spectrum in more areas across the country in the coming months.

The Verge has reached out to Verizon for further clarification on these impending changes. However, the potential layoffs, if they come to pass, would contribute to a series of job cuts that have been witnessed throughout the tech industry at major companies such as Meta, Disney, Lyft, and others.

Over the years, Verizon has prided itself on its extensive network coverage and acclaimed customer service. Scaling back investments in these areas within the United States could have detrimental effects on both the business and customers seeking assistance. Moreover, loyal employees now find themselves uncertain about the future trajectory of their careers within the company.