AM I NEXT? NO LOVE AT VERIZON - 1O,400 LAYOFFS

As we previously noted on October 5, 2018, New York, New York-based Verizon Communications has just offered 25% of its workforce, approximately 44,000 employees the opportunity to take a voluntary severance package in order to save $10 billion in costs by 2021. Verizon's severance package mostly targets senior employees, some with 20 years or more with the company, making it difficult for those in their 50s and 60s to obtain new employment.

It appears that the day of reckoning is here. According to an SEC 8-K filing dated December 11, 2018 …

** In September 2018, Verizon announced a voluntary separation program for select U.S.-based management employees. Approximately 10,400 eligible employees will separate from the Company under this program by the end of June 2019, with nearly half of these employees exiting in December of 2018. Principally as a result of this program but also as a result of other headcount reduction initiatives, the Company expects to record a severance charge in the range of $1.8 billion to $2.1 billion ($1.3 billion to $1.6 billion after-tax) in the fourth quarter of 2018.

** Verizon’s Media business, branded Oath, has experienced increased competitive and market pressures throughout 2018 that have resulted in lower than expected revenues and earnings. These pressures are expected to continue and have resulted in a loss of market positioning to our competitors in the digital advertising business.

Oath has also achieved lower than expected benefits from the integration of the Yahoo Inc. and AOL Inc. businesses. In connection with Verizon’s annual budget process in the fourth quarter, the new leadership at both Oath and Verizon completed a comprehensive five-year strategic planning review of Oath’s business prospects resulting in unfavorable adjustments to Oath’s financial projections.

** Verizon expects to complete an internal reorganization of legal entities associated with its wireless business in December 2018. Upon completion of this reorganization, Verizon expects to recognize a non-recurring deferred tax benefit of approximately $2.1 billion in the fourth quarter of 2018 which will reduce the Company's deferred tax liability by the same amount.

It is time for all non-critical Verizon employees, primarily those who perform non-specific support services to remain vigilant.

Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere ... are you now wondering, Am I Next?

AM I NEXT? NO LOVE AT VERIZON (09/15/24)

SEPTEMBER 15, 2024 — 4,800 EMPLOYEES TARGETED

The company announced a voluntary separation program for some US-based management positions in June 2024, with over half of the employees exiting in September 2024 and the rest by the end of March 2025.

According to an SEC filing, “In June 2024, Verizon announced a voluntary separation program for select U.S.-based management employees. Approximately 4,800 eligible employees will separate from Verizon under this program by the end of March 2025, with over half of these employees exiting in September of 2024.

MAY 28, 2023 — THOUSANDS OF CUSTOMER SERVICE REPRESENTATIVES ARE AT RISK

In a mass phone call to customer service employees, the company has notified them of upcoming “restructuring” and “streamlining” measures that are all but certain to result in significant layoffs.

Those involved in the call were told they’d be able to accept a severance offer (two weeks per year of tenure) or, in select cases, apply for roles to “transition to the next stage of your career journey.”

Those roles targeted include customer experience, loyalty, and technology positions.

It is believed that the company plans to offshore its customer service operations and employ sophisticated AI-driven chatbots.

NOVEMBER 4, 2021 — CONTINUING BAD NEWS

Verizon has confirmed that it executed another round of layoffs and employee buyouts that impacted the Verizon Business Group, which includes the company’s channel team, and the Verizon Global Technology Solutions Group.

A company spokesperson noted, “The industry-wide shift in consumer trends and expectations is driving the need for us to do things differently. This is an ongoing process as we continue looking at ways to enhance our customer’s experience while helping to make the business more efficient. We must adjust staffing levels in some parts of our business. These decisions are never made lightly and we will work with employees who are impacted by these changes throughout their transition.”

The company refuses to disclose the number of layoffs.

OCTOBER 5, 2018 — Original post…

New York, New York-based Verizon Communications has just offered 25% of its workforce, approximately 44,000 employees the opportunity to take a voluntary severance package in order to save $10 billion in costs by 2021. Verizon's severance package mostly targets senior employees, some with 20 years or more with the company, making it difficult for those in their 50s and 60s to obtain new employment.

This is in addition to transferring 2,500 IT workers to Infosys of the India’s largest outsourcing contractors.

The long-term Verizon employees to be outsourced appear to be royally screwed as they are not eligible for severance payments and won’t receive their 2018 bonus if they are offered a job at Infosys and don’t accept it. According to published reports, “the severance offer excludes employees who are being 'rebadged' to Infosys and offered a 1-year retainer at the Indian company, most likely to train their replacements.” Negotiating at the point of a proverbial gun. The Infosys outsourcing contract is said to be worth $700 million.

According to new CEO Hans Vestberg, the reduction-in-force will give Verizon “an opportunity to find more efficiencies in the size and scope of our V Team and help expedite the building of an innovative operating model for our future.”

Making major employee decisions before a major holiday season appears to be short-sighted. Look for further layoffs and an exodus of top talent. And increasing stress on the remaining employees who will be forced to do more with less.

Are you wondering Am I Next?