Telecom giant Verizon has begun laying off some 13,000 employees as part of a new reorganization initiative. Approximately a week ago, the Wall Street Journal reported that Verizon was considering job cuts. Now, the layoffs have begun, according to an email viewed by Gizmodo.
“Our current cost structure limits our ability to invest significantly in our customer value proposition,” wrote Verizon’s new-ish CEO, Dan Schulma, in an email sent Thursday and shared with Gizmodo (the Journal originally reported on the email). “We must reorient our entire company around delivering for and delighting our customers,” the top executive added.
Yes, to “delight” customers, the company must apparently very much not delight its workforce. Schulman, who took over the top spot in October, said in the email that the layoffs would reduce Verizon’s “outsourced and outside labor expenses.” To help the workers who are losing their jobs, Verizon has established a $20 million Reskilling and Career Transition Fund, Schulman said. This fund will “focus on skill development, digital training and job placement to help our people take their next steps,” he shared.
The CEO added that technological change was sweeping through the economy. “Changes in technology and in the economy are impacting the workforce across all industries,” he wrote. “Change is necessary, but it can be difficult—especially when it affects valued teammates. It’s important that we direct our energy and resources to set Verizon on a path to success. The actions we’re taking are designed to make us faster and more focused, positioning our company to deliver for our customers while continuing to capture new growth opportunities.”
When it comes to job security, this has been a tough year for tech workers. Amazon recently announced 14,000 layoffs, Accenture and Synopsis have announced thousands of layoffs, Microsoft, Salesforce, and Oracle have made similarly dour announcements, and Intel has promised to reduce its workforce by a whopping 25,000. There are many other tech companies that have made similar moves over the last twelve months.
Yes, lots and lots of people are getting fired right now, and, according to reports, it’s increasingly difficult for entry-level workers to find positions. Some people blame AI (which is promising to help America’s C-suite gut certain segments of their corporate workforce) while others merely blame our shitty economy, which seems to be suffering under the yoke of the Trump administration’s dopy fiscal policies. There’s no reason why both can’t be to blame. Whatever the cause, one thing is clear: Silicon Valley is in its downsizing era, and it’s not so much fun.
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