U.S. wireless carrier Verizon announced on Thursday that it will sell 274 company-owned retail stores and eliminate approximately 500 corporate positions. The restructuring measures, effective August 16, are expected to affect a total of 3,000 retail and corporate employees. Following the sale, Verizon will retain ownership of 1,000 retail locations.
The company stated that six large operators currently manage most of its franchised stores. According to Verizon, approximately 70% of employees at previously sold retail locations have successfully transitioned to roles with the new owners. The carrier recently introduced simplified plans and loyalty perks to compete in a saturated domestic market against rivals AT&T and T-Mobile.
These layoffs follow a series of workforce reductions initiated under CEO Dan Schulman, who joined a Verizon board seat in 2018 and took the chief executive role in October. The company previously eliminated several hundred positions in May and more than 13,000 jobs in November. Verizon is currently collaborating with franchise owners to manage an additional 5,000 third-party outlets.