Verizon Communications informs customer service employees of impending layoffs amid restructuring

Verizon Communications Inc conducted a meeting with its customer service employees to inform them about forthcoming restructuring and streamlining initiatives that are highly likely to lead to substantial layoffs, revealed the Verge. 

According to the same report, Wednesday's call was attended by over 6,000 employees, with indications that the impact of the consolidation measures could potentially extend well beyond that number.

The report mentioned that Verizon is expected to provide further details on May 25, as conveyed through a prerecorded message received by employees.

Elevated inflation and increasing interest rates have led to a decline in demand, resulting in numerous US companies, including Meta Platforms Inc and Alphabet Inc, implementing significant layoffs affecting thousands of their employees.

In April, Verizon fell short of its revenue and free cash flow estimates for the first quarter. The company experienced a decline in wireless subscribers as inflation caused Americans to postpone device upgrades, and the growth surge driven by the pandemic gradually subsided.

During the quarter, the carrier experienced a loss of 127,000 net monthly bill-paying wireless phone subscribers.