Telecom giant Verizon has started laying off about 13,000 employees as part of a new restructuring initiative. About a week ago, the Wall Street Journal reported that Verizon was considering job cuts. The layoffs have now begun, according to an email seen by Gizmodo.
“Our current cost structure limits our ability to make significant investments in our customer value proposition,” Verizon’s new-ish CEO, Dan Shulma, wrote in an email sent Thursday and shared with Gizmodo (the Journal originally reported on the email). “We must refocus our entire company around serving and delighting our customers,” the top executive said.
Yes, to “delight” customers, the company clearly has to do a lot No Delight your workforce. Schulman, who took the top spot in October, said in an email that the layoffs will reduce Verizon’s “outsourced and external labor expenses.” Schulman said Verizon has set up a $20 million reskilling and career transition fund to help employees who are losing their jobs. “This fund will focus on skills development, digital training and job placement to help our people take their next steps,” he shared.
The CEO said that technological change is becoming widespread in the economy. “Changes in technology and the economy are impacting the workforce in all industries,” he wrote. “Change is necessary, but it can be difficult – especially when it impacts valued teammates. It is critical that we direct our energies and resources to position Verizon on the path to success. The actions we are taking are designed to make us faster and more focused, enabling our company to deliver for our customers while pursuing new growth opportunities.”
When it comes to job security, it’s been a tough year for tech workers. Amazon recently announced 14,000 layoffs, Accenture and Synopsys have announced thousands of layoffs, Microsoft, Salesforce, and Oracle have made similarly disappointing announcements, and Intel has promised to reduce its workforce by 25,000. There are several other tech companies that have taken similar steps over the past twelve months.
Yes, a lot of people are being laid off right now, and, according to reports, it’s becoming harder for entry-level employees to find positions. Some blame AI (which is promising to help America’s C-suites by influencing parts of their corporate workforce) while others simply blame our poor economy, which seems to be suffering due to the Trump administration’s poor fiscal policies. There is no reason why both cannot be found guilty. Whatever the reason, one thing is clear: Silicon Valley is in its downsizing era, and it’s not that much fun.