Verizon disclosed it expects to record a severance charge of between $1.7 billion to $1.9 billion in the third quarter, the result of a previously announced voluntary separation programme for employees.
In a filing with the Securities and Exchange Commission, the US operator stated it concluded the programme announced in June and the charge also factored in other “headcount reduction initiatives”.
It is due to issue Q3 earnings on 22 October.
Approximately 4,800 employees will leave Verizon by the end of March 2025 under the programme, with more than half exiting the company this month.
The company added in the filing it plans to cease the use of certain property assets and exit “non-strategic portions” of some businesses. This will result in asset and business rationalisation charges of between $230 million to $380 million, also reported in the third quarter.
Verizon offered a similar separation programme to employees in 2018, resulting in more than 10,000 workers leaving the US operator the following year.
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