Verizon lays off more employees as CEO Schulman hands out more pink slips
After letting 13,000 employees go in November, Verizon lays off more workers.
Verizon lowers its headcount again. | Image by PhoneArena
You might have thought that Verizon was done handing out pink slips after laying off 13,000 workers about six months ago. Business Insider said on Thursday that the carrier confirmed to it that even after reducing its headcount by such a large figure in November, the company just laid off several hundred additional workers.
More layoffs at Verizon; is this the end for now?
Verizon refused to reveal the exact number of employees axed in the latest layoffs but did say that the number was less than 1% of its overall headcount. After slicing the number of employees working at the carrier by 15% to 89,000, the most recent round of job cuts would have affected fewer than 890 Verizon workers.
Verizon laid off workers from its Basking Ridge, New Jersey operational headquarters. | Image by Verizon
While Verizon employees working coast-to-coast were let go in the latest round of firings, those who had been toiling for the telecom giant from its operational headquarters in Basking Ridge, New Jersey, made up the largest percentage of the workers who were canned.
Despite praise from the CEO over better work results using AI, Verizon denies the technology was behind the layoffs
Looking to reduce the emotions that people typically generate after hearing news like this, Verizon did say that it has over 1,000 openings on its career website. The carrier noted that these former employees who were just laid off are eligible to apply for any of the openings they qualify to be hired for. A Verizon spokesman said, "We're continuing to add headcount to grow parts of the business that are growing while making targeted job reductions to portions of the business where this is needed."
With most fingers pointed at AI as the likely culprit behind the latest layoffs, Verizon denied that the technology was the reason more employees lost their jobs. Thinking that AI was involved makes plenty of sense considering that CEO Dan Schulman praised AI during last week's first quarter earnings call.
Schulman had mentioned that AI was responsible for a drop of nearly 70% in vendor support costs and a 40% increase in software code output. The CEO, who took over the position last November, has talked about improving customer service and turning the culture at Verizon from profits first to customers first. Unfortunately, this does not seem to be the case and after being a Verizon customer for over 20 years, the carrier has done nothing to make me want to stay for even another day.
This is the perfect time for Verizon to go after T-Mobile
Just the other day Schulman said that Verizon would cut back on free phone and line offers to improve profitability. Maybe it is me, but this doesn't seem like Verizon is changing its culture at all to delight its customers.
Mr. Schulman, what are you doing? T-Mobile has not been so vulnerable in many years with all the T-Life hoopla and the transition to a digital MNO. The area where Verizon is disappointingly too far behind T-Mobile is with the absolutely pathetic rewards program Verizon offers.
Verizon's rewards program is embarrassing
Verizon charges its subscribers $10 for streaming service bundles. Folks, T-Mobile gives away an in-season subscription to MLB.TV, a $150 value. The latter also has free Netflix, the best rewards program in T-Mobile Tuesdays, free AAA membership and much more.
Verizon no longer has the coverage and speed that make it a must-own service for those who need to feel like they are always connected to loved ones. That may have been the case years ago, but not now. Most of the time I feel like an idiot for remaining with Verizon and not taking advantage of T-Mobile's perks and rewards.
And now the company continues to cut the headcount as it pushes AI solutions. It almost feels as though Verizon is looking to end up at the same place as T-Mobile, only it is taking a different route to get there.
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