Verizon Communications has set a new record with its most extensive workforce reduction so far. A total of over 13,000 employees will be laid off due to the covid world restructuring drive organized by the newly appointed CEO Dan Schulman. The corporation has resorted to drastic measures, this being the biggest strike against their competitors’ costs and opening doors for future market share increase through the wireless and home internet sectors.

As per an internal memo seen by The Wall Street Journal, the process of notifying employees of their job status will commence on Thursday. This action is the lost resort of Verizon trying to regain its footing, market position, and put in check the competition which is getting fiercer by the day.

Shulman’s Vision: A Shift Towards “Customer Delight”

Dan Schulman, who just stepped up to the plate, made it clear that Verizon needs to change its approach and become customer oriented again. The company has not only been losing subscribers but also the competitors are taking up the customers by offering great prices and expanding their 5G services.

Schulman mapped out a plan for transformation which consists of heavy investment in AI, quantum computing, and humanoid robotics while at the same time cutting deep in operational costs. The main purpose: to recover Verizon’s competitiveness for the next decade.

Competitive Pressure Forces Urgent Restructuring

The telecom sector’s fierce competition has caused Verizon’s market performance to remain under pressure. The increased competition results in more attractive wireless and broadband packages, and therefore, Verizon loses customers slowly but surely and its revenues start to fall.

While the layoffs are likely to happen in phases over a period of several months, the restructuring nevertheless represents a crucial point of the company’s passage to the next-generation technologies and a leaner organizational structure being faster.