Verizon conducted a conference on Wednesday with its entire customer service department, just days after revamping its cellphone data plans, to inform workers of forthcoming “restructuring” and “streamlining” efforts that will almost certainly result in major layoffs. A taped message stated that more information would be sent to staff on May 25.
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The Verge talked with some of the more than 6,000 employees who were present for today’s call, but the potential reach of the consolidation measures is far wider.
Verizon’s earnings for the first quarter of fiscal year 23 fell short of Wall Street’s expectations, and this warning comes barely a month after the company reported those figures. In the last quarter, the business lost 127,000 postpaid customers. Sowmyanarayan Sampath has been with Verizon since March when he was named CEO of the Verizon Consumer Group.
On today’s call, employees were informed that they would either be eligible for severance pay (two weeks for every year of service) or, in some circumstances, be invited to apply for positions that would help them “transition to the next phase of their professional journey.”
Positions in the areas of customer service, loyalty, and technology were listed in a company document seen with The Verge. People who were on the conversation said that the corporation offered the impacted employees a deadline of June 7 to make a decision. Verizon will let employees know their future with the firm on June 23. Individuals who apply for new roles are not assured to be hired, and those who do not choose the severance option will be let go.
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At the Verizon subreddit, several users have speculated that the firm is making these changes in order to outsource even more post-sale service and customer support to third-party providers in other countries. According to those in the know, Verizon has effectively ceased hiring for domestic customer support employees.