New York, New York-based Verizon Communications has just offered 25% of its workforce, approximately 44,000 employees the opportunity to take a voluntary severance package in order to save $10 billion in costs by 2021. Verizon's severance package mostly targets senior employees, some with 20 years or more with the company, making it difficult for those in their 50s and 60s to obtain new employment.
This is in addition to transferring 2,500 IT workers to Infosys of the India’s largest outsourcing contractors.
The long-term Verizon employees to be outsourced appear to be royally screwed as they are not eligible for severance payments and won’t receive their 2018 bonus if they are offered a job at Infosys and don’t accept it. According to published reports, “the severance offer excludes employees who are being 'rebadged' to Infosys and offered a 1-year retainer at the Indian company, most likely to train their replacements.” Negotiating at the point of a proverbial gun. The Infosys outsourcing contract is said to be worth $700 million.
According to new CEO Hans Vestberg, the reduction-in-force will give Verizon “an opportunity to find more efficiencies in the size and scope of our V Team and help expedite the building of an innovative operating model for our future.”
Making major employee decisions before a major holiday season appears to be short-sighted. Look for further layoffs and an exodus of top talent. And increasing stress on the remaining employees who will be forced to do more with less.
Are you wondering Am I Next?