Less than 7.0% of workforce accepted early exit offer
The voluntary separation program is part of Verizon’s plan to reduce its annual costs by $10 billion by 2021. But it looks like the number of employees who accepted Verizon’s voluntary separation offer is smaller than the company had targeted. In October, the Wall Street Journal reported that Verizon’s voluntary separation offer went out to roughly 44,000 employees, representing almost 30% of the company’s global workforce. Workers who accepted Verizon’s voluntary separation offer are expected to leave the company by mid-2019.
Verizon to eliminate more jobs through outsourcing agreement
In addition to sending some of its employees on early retirement through a voluntary separation program, Verizon is also outsourcing certain jobs to allow it to streamline and cut costs. Verizon could remove as many as 2,500 additional jobs through an outsourcing agreement with Indian IT services company Infosys (INFY), according to a Bloomberg report.
Verizon’s revenue rose 2.8%
Verizon generated $32.6 billion in revenue and made $4.9 billion in profit in the third quarter. Revenue rose 2.8% YoY. AT&T (T), T-Mobile (TMUS), and Sprint (S) grew their revenues by 15.3%, 7.5%, and 6.4% YoY, respectively, in the third quarter.
Verizon’s cash holding stood at $26.5 billion at the end of the third quarter.