Another mass layoff of over ten thousand people! Verizon plans the largest staff reduction in its history, 15,000 employees.

According to media reports citing sources familiar with the matter, Verizon Communications plans to lay off about 15,000 employees to cope with increasingly fierce competition in the wireless service and home broadband markets, and to cut costs. This will be the largest round of layoffs in the company's history, expected to take place next week, with most of the cuts coming through direct layoffs.

In addition, Verizon plans to convert about 200 stores to a franchise model, which will result in some employees no longer being counted on its payroll. According to the company's public disclosures, as of February this year, Verizon had about 100,000 employees.

Verizon is currently the largest telecom operator in the U.S. by number of users, but it faces intense market competition in both wireless and home internet services, and has been steadily losing postpaid mobile users for the past three quarters. In April, the company launched a price lock policy for some customers, but competitors quickly rolled out similar promotions.

In the latest quarter, Verizon suffered a net loss of 7,000 consumer postpaid mobile connections, while Wall Street had originally expected an increase of 19,000. Meanwhile, AT&T and T-Mobile have continued to grow their postpaid subscriber numbers.

Last month, Verizon appointed independent board chairman and former PayPal and Virgin Mobile USA CEO Daniel Schulman as its new CEO. Schulman stated he would make significant cost cuts and take measures to reverse the trend of user loss. Schulman said during the company's third quarter earnings call:

“Verizon is at a critical turning point. The company also plans to exit or streamline legacy businesses without a clear path to profitability, aiming to become more agile and efficient. Cost reduction and efficiency gains will be an important part of our daily work.”

In an October report, Morgan Stanley analysts noted that achieving Schulman's vision won't be easy or quick in the now mature U.S. telecom industry, though Verizon may still improve its operational and financial performance in the long run.

Amid the wave of efficiency brought by technological transformation, Verizon has joined the ranks of major companies announcing layoffs recently, including giants such as Amazon, UPS, and Target.

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