Verizon Communications Incorporated has announced plans to cut about 3,000 jobs in its corporate-owned retail business as part of a restructuring that will see 274 stores transferred to independent ownership.
The US telecommunications company said the changes will take effect on 16 August, with affected employees leaving Verizon’s payroll. However, it said many of the workers are expected to remain employed by the new owners operating the transferred stores.
Following the transition, Verizon will retain 1,000 company-owned retail outlets, while approximately 5,000 additional stores will continue to operate as independently owned franchises.
The latest move comes months after the company unveiled a broader workforce reduction programme.
Late last year, Verizon announced plans to cut 20 per cent of its non-union workforce, affecting around 13,000 employees, as part of efforts to streamline operations and improve performance.
Chief Executive Officer Dan Schulman has said the company must make difficult decisions to revive growth at the United States’ largest mobile network provider. He has also indicated that artificial intelligence will play a significant role in the company’s future operations, predicting that the technology will replace “a large percentage” of customer service work currently carried out by employees.
According to Schulman, the increased use of artificial intelligence is also expected to enhance the customer experience by improving service delivery and operational efficiency.
The restructuring forms part of Verizon’s wider strategy to strengthen its competitive position. In recent months, the company has introduced a simplified range of wireless service plans and launched a new customer loyalty programme offering existing subscribers free and discounted benefits.
Investors will be watching closely for further details on the company’s transformation strategy when Verizon releases its quarterly financial results on 24 July.
