Sign up
Log in
UPDATE 2-Verizon to take up to $1.9 billion severance charge in Q3; over 2,000 staffers to exit this month
Share
Listen to the news
UPDATE 2-Verizon to take up to $1.9 billion severance charge in Q3; over 2,000 staffers to exit this month

Adds background

- Verizon VZ.N expects to record a severance charge between $1.7 billion a $1.9 billion in the third quarter as a result of a previously announced voluntary separation program, the carrier said in a regulatory filing on Thursday.

The telecom operator announced a voluntary separation program in June for select U.S.-based management staff.

About 4,800 eligible employees are set to separate from Verizon by the end of March 2025 under the program, with over half of them exiting this month, the company said.

It also plans to stop the use of certain real estate assets and exit -strategic portions of some businesses, due to which it will record a separate charge of about $230 million to $380 million in the third quarter, Verizon said.

Shares of the company were down marginally in morning trading.

It has been facing tough competition from AT&T T.N and T-Mobile US TMUS.O, with both its rivals seeing a lift in subscriber , thanks to unlimited plans.

Verizon missed quarterly revenue estimates in July, grappling with fewer consumers upgrading their phones. Analysts are betting on Apple's AAPL.O iPhone release to aid phone upgrade activity, benefiting Verizon.

To boost its subscriber base, Verizon agreed last week to buy fiber-optic internet provider Frontier Communications FYBR.O in an all-cash deal worth $20 billion.


(Reporting by Deborah Sophia in Bengaluru; Editing by Pooja Desai)

((DeborahMary.Sophia@thomsonreuters.com;))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
What's Trending
No content on the Webull website shall be considered a recommendation or solicitation for the purchase or sale of securities, options or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.