Verizon Layoffs 2018
In January 2018, telecommunications company Verizon Communications Inc. (NYSE:VZ) is planning on giving 190 employees of its Santa Clara, California office permanent layoff notices. The affected employees were made aware of Verizon’s layoffs in 2018 in November.
Verizon is not the only company cutting jobs in the California area in January. Capital One Financial Corp. (NYSE:COF), Tyson Foods, Inc. (NYSE:TSN), and Boeing Co (NYSE:BA) have also notified a number of employees that they will likely be starting 2018 looking for new work.
Verizon’s Earlier Layoffs in California
The Verizon layoffs in 2018 are nothing new for the company, with 155 employees having been given pink slips back in January 2017.
In that instance, the impacted employees were working out of San Jose on go90, the company’s hardware and streaming app offshoot. This is where the company is trying to connect with and boost market share via the younger generation and cord cutters. However, the service has not proven to be a success and will now be handled by those who were originally employed by video startup Vessel before its acquisition by Verizon in October 2016.
What’s more, following Verizon’s acquisition of Yahoo! and attempt to integrate it with previous acquisition AOL, former AOL CEO Tim Armstrong stated that a whopping estimated 2,100 people would lose their jobs. The resulting subsidiary was named Oath, with Armstrong at the helm. “It’s mainly focused on us putting more resources toward the front end, towards the consumer side,” he explained.
More Telecom Company Layoffs in 2017
The layoffs made by Verizon were not the only ones in the sector. A&T Inc. (NYSE:T) gave 278 call center employees the option of being laid off or relocating to another office. A decline in the number of calls received was cited as the reason, with more customers finding answers to their concerns online and using the call center only as a last resort.
Comcast Corporation (NASDAQ:CMCSA) similarly reduced its workforce in 2017 through layoffs and job relocations. In total, 200 sales employees were laid off and 170 call center jobs were relocated.
Conclusion: Verizon Layoffs in 2018
Verizon is expecting to hand out 190 pink slips before January ends. And that’s just the first month of the year; imagine how many Verizon layoffs for 2018 as a whole there could be.
It seems as if the entire industry is looking to reduce its employee headcount. If AT&T, Comcast, and other companies in the industry lay off a percentage of their workforces, it should not come as a surprise. Since these are large telecommunication companies, it takes time for the decision to be made and executed.
“WARN Report,” Employment Development Department, December 10, 2017.
“WARN Report,” Employment Development Department, July 10 ,2017.
“Verizon Lays Off 155 Employees at Go90 Division (EXCLUSIVE),” Variety, January 23, 2017.
“Tim Armstrong sees layoffs of 15% at Oath unit created after Verizon closed its Yahoo deal,” CNBC, June 14, 2017.
“AT&T to close East El Paso call center by year’s end; 278 face layoff or relocation,” USA Today, September 14, 2017.
“Comcast laying off 200 at Oak Brook sales center,” Chicago Tribune, August 29, 2017.