On September 12th, Verizon filed an SEC form 8-K informing investors of a major business decision. By March of 2025, Verizon aims to cut approximately 4,800 U.S.-based management roles within the company. This will be accomplished via a “voluntary separation program” and ‘other headcount reduction initiatives’.
As a result of the cuts, Verizon is looking at a hefty severance charge of $1.7 billion – $1.9 billion in Q3 2024.
The filing also outlines Verizon will not longer use certain real estate assets. There will also be other moves made to exit ‘non-strategic portions of certain businesses’. This will amount to savings of $170 million – $290 million after taxes in Q3 2024 as well. The lack of detail on the later bringing into question what exactly Verizon finds to fit that definition.
The 4,800 impacted employees represents over 5% of Verizon’s total U.S.-based full-time employees. This is about 4.5% of its total full-time employees, based on their SEC form 10-K filing for 2023 data.
Telecom in America – The Acquire & Trim Model
Remember when T-Mobile acquired Sprint and made a jobs positive promise still live on their site? That lasted all but months before the cuts began and T-Mobile continues to run leaner as a joined company than the two ever did separately. The merger never did as promised to deliver more jobs to Americans.
It seems Verizon is slated to make similar moves now. Hot on the heels of a major boost to its fiber network acquiring Frontier, the job cuts have come. This might be a measure to prepare to acquire Frontier’s ~13,300 employees, as the timing aligns.
The form does not go into detail on specific business functions or roles impacted by the separation program, but does state it is only management-level roles. Keep in mind this likely isn’t just people leaders, but managers of any process or program as well. Frontline appears safe, but any other role could be on the chopping block.
In this blockbuster acquisition by telecom standards, Verizon is set to gain 2.2 million fiber subscribers and billions in fiber assets to boost its network nationwide. Frontier customers are likely also looking at additional value in adding other Verizon services to their bill, if they haven’t already.
The FCC is seemingly complicit with the major carriers gobbling up potential competition in recent years. There has been no repercussions for T-Mobile’s job cuts that broke their merger promises. Boost Mobile still struggles to gain traction as a true ‘fourth carrier’ in the U.S. since the merger as well (though that could be due to Dish not really trying that hard).
While it is true Frontier’s network opens up multiple new states Verizon can offer fiber services, their networks did collide in states like Pennsylvania and New York. These states are effectively losing a competitor for fiber internet service. Pair this with cuts, and the overall telecommunications picture in the U.S. continues to slowly have less players in the game.
