Verizon Slashes 13,000 Jobs in Major Pivot to AI-Driven Strategy

Verizon is cutting 13,000 jobs. The announcement was made on November 20. This move is part of a major corporate restructuring.

The decision comes under new leadership. Former PayPal executive Dan Schulman now leads the telecom giant. The cuts represent a significant shift in strategy.

A $20 Million Fund for Displaced Workers

The company is establishing a $20 million fund. This Reskilling and Career Transition Fund is for the departing employees. It will focus on digital training and job placement.

According to reports from Reuters, Verizon claims this is a first. They say it is the first corporate fund specifically for AI-driven workforce transitions. The goal is to help employees gain new skills for the modern economy.

Broader Tech Industry Trend and Leadership Shift

This is part of a wider industry pattern. Many large tech and media firms have announced similar cuts this year. The trend is often linked to a pivot towards AI efficiency.

The job cuts follow a recent CEO change. Hans Vestberg was replaced by Dan Schulman in October. Schulman has been candid about the need for “meaningful change” at the company.

This strategic overhaul positions Verizon to compete in an AI-dominated future. The substantial job cuts and unique reskilling fund highlight a transformative period for the telecom leader. The entire industry is watching Verizon’s next moves closely.

Thought you’d like to know

How many jobs is Verizon cutting?

Verizon is eliminating 13,000 positions. This reduction impacts a significant portion of its workforce. The company had nearly 100,000 employees at the end of last year.

What is the $20 million fund for?

The $20 million fund is for reskilling and career transition. It is designed to help laid-off employees with training. The focus is on digital skills and job placement assistance.

Why is Verizon making these cuts now?

New CEO Dan Schulman stated the company was falling short of its potential. He emphasized the need for a new strategy less reliant on price hikes. The shift is towards leveraging AI for growth and customer experience.

Who is the new CEO of Verizon?

Dan Schulman, the former CEO of PayPal, now leads Verizon. He took over from longtime CEO Hans Vestberg in October. Vestberg will stay on as an advisor until next fall.

Is this part of a larger tech industry trend?

Yes, many major companies have announced large job cuts this year. Firms like Amazon and Microsoft have also reduced their workforces. Leaders often cite a reorientation towards AI and efficiency.