Verizon to take up to $1.9 billion severance charge in Q3; over 2,000 staffers to exit this month
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Sept 12 (Reuters) -Verizon VZ.N expects to record a severance charge between$1.7 billion and$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 operatorannounced 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 non-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 numbers, 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 new 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
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