Verizon Offers First Massive Early-Retirement Package In Almost 15 Years

In short: Verizon offered an early-retirement package to eligible employees for the first time in almost fifteen years, a company spokesperson confirmed earlier this week. The offer is part of a wider corporate effort aimed at cutting costs but has only been made to management employees and it remains to be seen whether it will eventually extend to those in sales. The largest wireless carrier in the United States is willing to provide eligible workers with a three-week pay for every year of service, having described the severance package as "employee-friendly." Stateside unions are yet to comment on the offer.

Background: Verizon has been trimming its workforce since 2011; the company had approximately 153,000 employees in the second quarter of this year, 42,000 down compared to seven years ago, according to its consolidated financial reports. The company also laid off over 2,000 employees following its acquisition of Yahoo and its subsequent combination with AOL into a unit that's now called Oath. Approximately a year ago, the company announced plans to drop thousands of roaming customers in order to cut costs and save $10 billion with virtualization. Combined with the massive tax cut Congress approved last year, Verizon is on the road of running a much tighter ship in the future.

Impact: Verizon's cost-cutting efforts are significant in that they help keep investors happy during a period of massive, unavoidable investments in the fifth generation of mobile networks. The company's seminal 5G service is launching on October 1 but is set to offer fixed wireless access to the new connectivity standard, meaning it will be a broadband alternative with limited money-making potential. The industry will only unlock true wireless revenues with mobile 5G which is still at least two years away from large-scale availability in the U.S., making Verizon's current cost-cutting efforts that much more important for balancing the company's debt.

Copyright ©2019 Android Headlines. All Rights Reserved
This post may contain affiliate links. See our privacy policy for more information.
You May Like These
More Like This:
About the Author

Dominik Bosnjak

Head Editor
Dominik started at AndroidHeadlines in 2016 and is the Head Editor of the site today. He’s approaching his first full decade in the media industry, with his background being primarily in technology, gaming, and entertainment. These days, his focus is more on the political side of the tech game, as well as data privacy issues, with him looking at both of those through the prism of Android. Contact him at [email protected]