"Schulman said last month that Verizon understood it needs aggressive change, including cost transformation, fundamentally restructuring our expense base. We will be a simpler, leaner and scrappier business, he added. Schulman, a Verizon board member for seven years, has said he does not want to hike prices and seeks to be more customer-focused. Our financial growth has relied too heavily on price increases; a strategic approach that relies too much on price without subscriber growth is not a sustainable strategy, he said last month."
"The cuts, following the appointment of former PayPal boss Dan Schulman as CEO in early October, are aimed at the company's non-union management ranks and are expected to affect more than 20 percent of that workforce, one source said. Verizon also plans to transition around 180 corporate-owned retail stores into franchised operations, the source added. The Wall Street Journal reported the cuts earlier. Verizon is battling rising competition as subscriber growth slows and cautious consumers are unwilling to buy premium wireless plans."
Verizon plans to cut about 15,000 jobs, roughly 15 percent of its U.S. workforce, with actions possibly starting as soon as next week. The reductions target non-union management ranks and could affect more than 20 percent of that group. The company also intends to convert around 180 corporate-owned retail stores into franchised operations. The measures follow Dan Schulman's October appointment as CEO and form part of an aggressive cost-transformation and expense-base restructuring. Verizon faces slowing subscriber growth, rising competition from AT&T and T-Mobile, and consumer reluctance to buy premium wireless plans after prior workforce reductions.
Read at www.aljazeera.com
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