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Verizon confirmed that it will sell 274 of its own stores and eliminate about 500 corporate positions. The measure will affect about 3,000 employees including store staff and administrative areas.
The company announced it in an internal memo to its workers. It is a new step within the reorganization that began at the end of last year, after previous cuts.
What does the sale of Verizon’s 274 stores mean?
The transaction includes the transfer of 274 company-owned locations to franchise operators. They will be in charge of customer service under the Verizon brand.
After the sale, the company will retain 1,000 company-owned stores in the country. The change will take effect starting August 16.
- Stores sold: 274
- Stores Verizon retains: 1,000
- Corporate positions eliminated: 500
- Effective date: August 16
According to the company itself, about 70% of the staff at sold locations in previous processes was hired by the new operators. There is no guarantee that percentage will be repeated now.
How does this decision affect Verizon’s 3,000 workers?
The impact is divided into two groups. Staff at sold stores could continue working under the new franchise operators.
The corporate employees, on the other hand, will see their positions eliminated directly. Six major operators handle most of Verizon’s franchises.
This cut adds to an earlier one: in May the company had already eliminated several hundred jobs. That followed the announcement in November of more than 13,000 layoffs, the largest cut in its history.
Verizon competes with AT&T and T-Mobile in a saturated market. That is why it seeks to reduce costs while promoting new plans and benefits to attract customers.