Verizon Warns of $800M JV Loss and $750M Restructuring Charges
VZ•Verizon expects a $700 million to $800 million second-quarter loss from its new international joint venture with BT, where each company contributed $625 million. It also forecasts $350 million to $450 million in workforce reduction charges and $200 million to $300 million in asset rationalization costs.
1. Joint Venture Loss Estimate
Verizon and BT each contributed $625 million to form an international joint venture targeting enterprise customers, and Verizon expects to record a $700 million to $800 million loss in Q2 related to equity interests classified as held for sale.
2. Transformation Charges Breakdown
As part of ongoing restructuring, Verizon anticipates incurring workforce reduction charges of $350 million to $450 million and asset rationalization costs of $200 million to $300 million following the decision to cease use of select real estate and network assets.
3. Schulman’s Restructuring Strategy
Since taking the helm in October, CEO Dan Schulman has slashed over 13,000 jobs in November and enacted further layoffs last month, aiming to simplify operations, lower costs and reinvest savings into customer value propositions.
