Verizon To Record Up To $1.9 Billion In Costs For Layoffs, Asset Sales In Q3

Verizon Communications Inc VZ expects to book a severance charge of $1.7 billion–$1.9 billion in the third quarter due to the previously announced voluntary separation program.

In June 2024, Verizon shared plans to downsize 4,800 employees by the end of March 2025, with over half of these employees exiting in September 2024.

In September, Verizon plans to discontinue certain real estate assets and exit non-strategic portions of certain businesses, leading to asset and business rationalization charges of $230 million–$380 million in the third quarter of 2024.

In July, Verizon reported a topline growth of 0.6% to $32.8 billion, missing the consensus estimate of $33.1 billion.  The company ended the quarter with 11.5 million broadband subscribers, up 17.2%. Postpaid phone net additions were 148,000, beating consensus estimates of 118,000.

Last week, Verizon agreed to acquire Frontier Communications Parent, Inc FYBR for $20 billion to boost its fiber and wireless services.

Verizon stock is up 28% in the last 12 months. Investors can gain exposure to the stock through Invesco Dow Jones Industrial Average Dividend ETF DJD and SPDR Series Trust SPDR Portfolio S&P Sector Neutral Dividend ETF SPDG.

Price action: VZ stock is down 0.15% at $43.68 at last check Thursday.

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