Sept 12 (Askume) – Verizon (VZ.N) said in a regulatory filing on Thursday that it expects to collect severance payouts of $1.7 billion to $1.9 billion in the third quarter as a result of previously announced voluntary severance plans.
The telecom operator announced a voluntary separation program for some US managers in June.
Under the plan, about 4,800 eligible employees will leave Verizon by the end of March 2025, with more than half of them leaving this month, the company said.
Verizon said it would record a separate charge of about $230 million to $380 million in the third quarter as it also plans to spin off some real estate assets and exit some non-strategic parts of its business.
The company’s shares fell slightly in early trading.
It faces stiff competition from AT&T (TN) and T-Mobile US (TMUS.O) , both of which have seen their subscriber base grow with unlimited plans.
Verizon’s July quarter revenue came in below expectations as fewer consumers upgraded their phones. Analysts are betting that the release of Apple Inc ‘s (AAPL.O) new iPhones will boost phone upgrade activity, benefiting Verizon.
To expand its customer base, Verizon last weekagreed to acquire fiber-optic network provider Frontier Communications (FYBR.O) in a $20 billion all-cash deal .
