On Monday, Verizon said that more than 10,000 employees (or around 7 percent of its workforce) accepted its buyout offer, first announced in September.
The carrier said previously that it aimed to save $10 billion by 2021 and thin out its workforce as part of its effort to prepare for the launch of its 5G network service.
In addition to cutting costs, the buyout program was intended to give Verizon "an opportunity to find more efficiencies in the size and scope of our V Team and help expedite the building of an innovative operating model for our future," CEO Hans Vestberg said in a memo to employees in September.
Restructuring ahead of 5G rollout
Verizon offered 44,000 employees across all of its business segments three weeks’ pay for every year at the company, up to 60 weeks. Verizon promised earlier this fall that its cost-cutting drive wouldn’t affect sales executives or managers in "crucial company roles.”
The end dates for the employees who accepted the buyout offer range from the end of 2018 to June 2019.
“For those who were accepted, the coming weeks and months will be a transition. For the entire V Team, there will be opportunities to work differently as we prepare for the great things to come at Verizon,” Vestberg said in a note to employees.
Verizon is currently taking steps to prepare for the rollout of 5G network service.
“These changes are well-planned and anticipated, and they will be seamless to our customers,” Vestberg said in a statement. “This is a moment in time, given our financial and operational strength, to begin to better serve customers with more agility, speed and flexibility.”
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