Verizon Communications Inc. will start notifying employees on Thursday that their positions are affected in the company’s largest-ever round of layoffs, The Wall Street Journal reported, quoting an email that CEO Dan Schulman sent to staff. The company intends to cut more than 13,000 jobs as part of Schulman’s plan to reduce Verizon’s cost base, according to the report. “Our current cost structure limits our ability to invest significantly in our customer value proposition,” the CEO said in the email, adding that the company must be reoriented “around delivering for and delighting our customers.”
Challenger: Job cuts soar 183% in October
Job cuts in the United States jumped 183% in October compared to the previous month, according to a Challenger, Gray & Christmas Inc. report published on Thursday. There were 153,074 cuts last month, compared to 54,064 in September, the highest October total since 2003. Annually, job cuts surged 175%. The tech sector was the biggest contributor at 33,281 job cuts, followed by retail at 2,431 and services at 1,990. In the year through October, employers announced 488,077 planned hires, 45% less than a year ago and the lowest number since 2011. “Some industries are correcting after the hiring boom of the pandemic, but this comes as AI adoption, softening consumer and corporate spending, and rising costs drive belt-tightening and hiring freezes. Those laid off now are finding it harder to quickly secure new roles, which could further loosen the labor market,” Challenger, Gray & Christmas Chief Revenue Officer Andy Challenger said.