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Verizon has struggled to slow customer losses in its wireless business in recent years, and under new leadership, it is making major workforce changes.
Dan Schulman, who became CEO of Verizon in October last year, has accelerated efforts to transform the company after itlost about 2.25 million wireless customersover the past three years, following back-to-back price increases and amid heightened competition.
"We are not delivering the shareholder returns our investors expect," said Schulman during anearnings call in October.
"Despite investing significantly in network leadership, we have not been able to translate that into winning in the market." Verizon laterlaid off more than 13,000 employees in Novemberto simplify its operations and reduce complexity and friction in its business to better serve customers.
It also sold 179 corporate-owned retail stores.
The company later cut hundreds of jobs nationwide in May, impacting less than 1% of its global workforce, according to aBusiness Insider report.
Now Verizon is once again shrinking its workforce and retail footprint, this time affecting over 3,000 workers, according to arecent report from the Wall Street Journal.
Verizon is planning to sell 274 company-owned retail stores to franchisers, bringing its total store footprint to 1,000 after the sale, which will take effect on Aug.
In an internal memo obtained by the Journal, Verizon told employees that having at least 1,000 corporate-owned stores over the next three years will be sufficient to support its long-term strategy.
In a statement to TheStreet,RTMNexusCEO Dominick Miserandino said Verizon's move to sell 274 of these stores is "a massive exercise in offloading operational risk." "Running a physical retail store today is incredibly expensive — you have soaring commercial rents, utility bills, and heavy payroll costs," said Miserandino.
"By handing these keys over to independent, authorized franchise dealers, Verizon gets to keep its name on the building while completely scrubbing the operating liabilities off its books." Related: Verizon acquires 35-year-old wireless carrier as it shuts down While most of Verizon's 3,000 job cuts will be from selling these retail locations, the carrier is also laying off 500 corporate employees.
John Sinclair, head of consulting and transformation delivery at Americas at Bosch USA, criticized Verizon's strategy to cut jobs in arecent post on social media platform X, claiming that the move reflects poor leadership.
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