Verizon's Voluntary Layoffs: What You Need To Know

Telecom giant and Dow Jones component Verizon Communications Inc. VZ said Monday that 10,400 of its employees accepted an offer to voluntarily retire from the company ahead of a push into 5G.

What Happened

Verizon's "well-planned and anticipated" move to lower its headcount will offer employees up to 60 weeks of salary, bonuses and benefits, depending on the length of their careers at Verizon, the company said. As of the end of the third quarter, the company had around 152,000 employees, so its voluntary separation offer impacts close to 7 percent of its staff.

The objective of the move is to better position Verizon to maximize growth opportunities in the coming 5G era, the company said.

Why It's Important

In conjunction with Verizon's announcement, the company is also taking a $4.6-billion writedown on its media unit Oath, CNN reported. The company essentially admits that its media unit — which includes Yahoo and AOL — has close to zero value. This marks a drastic loss, as Verizon previously said Oath was worth $4.8 billion, CNN said.

What's Next

Some Verizon workers will retire from the company as soon as in the coming weeks and others by June. The move is part of ex-CEO Lowell McAdam's four-year plan to trim $10 billion in costs.

Related Links:

Pro: Western Allies Need To Avoid Chinese 5G Equipment

The Telecom Sector: JPMorgan Downgrades Verizon, Upgrades AT&T

Public domain photo via Wikimedia.