Verizon CEO Schulman shakes things up again with more store sales and job cuts
The restructuring of Verizon promised by CEO Dan Schulman continues with more store sales and layoffs.
Verizon sells more stores, cuts more jobs | Image by PhoneArena
Earlier this week, a Verizon employee leaked the news that the carrier was going to lay off more employees on Thursday. Sure enough, the company announced today 3,000 jobs will be cut including 500 corporate jobs. 2,500 retail employees will be laid off.
Verizon is selling-not closing-274 corporate-owned stores
Verizon is selling 274 company-owned stores, but they won't be closed. Instead, six different entities will be purchasing these locations, turning them into authorized Verizon retail locations. These changes will take place on August 16, and after that date, Verizon will be left with approximately 1,000 corporate-owned stores.
What does ths news mean for Verizon?
The wireless firm also stated that 70% of the employees who worked at the retail locations being sold had already taken a new job with one of the six companies that are buying the stores. Verizon wrote a note to these employees in an attempt to make them feel better by using a little flattery. The note said that the carrier is working with franchise owners that operate 5,000 locations "to elevate the experience in every one of their locations because we know how important they are to our overall customer experience."
Verizon spokesman says AI not responsible for today's job cuts
Verizon spokesman Rich Young said, "Our CEO is committed to transform and improve this company and put it on a strong footing going forward, and this is part of his plan." Verizon CEO Dan Schulman already laid off a company record 13,000 employees with one swift swipe of his pen back in November, just six weeks after taking over from former CEO Hans Vestberg. At that time, 179 corporate stores were sold to franchise owners.
Verizon CEO Dan Schulman might dress like John Legere, but will he be as successful? | Image by Verizon
While Schulman has warned Verizon employees that AI is going to lead to the elimination of many jobs at Verizon, spokesman Young said that today's job cuts have nothing to do with AI. The carrier has a strategy, some of which has already been announced, that includes simplifying its wireless offerings, dropping activation and upgrade fees, and offering a loyalty program offering discounts and what the company calls "perks."
How Verizon shares did on Thursday
Recently, the stocks of the "Big 3" in the US, Verizon, AT&T, and T-Mobile, have been a great hedge play as they have been rising when the broad market falls (although they have fallen while the broad market has risen). So Verizon's rise of $1.05 or 2.45% on Thursday to a close of $43.88 might have been a function of a 106-point drop in the Dow Industrials rather than a positive response to today's news. After all, T-Mobile (+2.79%) and AT&T (+2.57%) also rose on Thursday.
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