Verizon expects to record a severance charge of $1.7 billion to $1.9 billion in the third quarter due to a voluntary separation program announced in June for US-based management staff.
Around 4,800 employees will leave the company by March 2025, with more than half exiting this month. The company will also record an additional charge of $230 million to $380 million as it stops using certain real estate assets and exits non-strategic businesses.
Facing competition from AT&T and T-Mobile, Verizon missed revenue estimates in July but hopes Apple’s new iPhone release will drive upgrades. The company is working to boost its subscriber base and recently agreed to buy Frontier Communications for $20 billion.