The largest U.S. wireless carrier by subscribers said in a filing that competition pressures will continue for Oath, which was formed after Verizon bought Yahoo and AOL. The company previously said it did not expect Oath to meet its revenue goals. [nL3N1X36DP]
Verizon had said that about 10,400 employees will leave the company by the middle of next year as part of its voluntary separation program. The employees will get a salary of up to 60 weeks, bonus and benefits, depending on their length of service.
The New York based-company said the severance charge was mainly on account of the buyouts announced on Monday as well as other headcount reductions.
Verizon, which had 152,300 employees as of the quarter ended Sept. 30, has been looking to cut costs as it ramps up investment in its next-generation 5G network, which is expected to fuel its future growth.
It said severance charges in the fourth quarter would come to $1.3 billion to $1.6 billion after tax, with the Oath charge amounting to $4.5 billion after tax.
Analysts on average expect Verizon to post a profit of $1.08 per share for the current quarter, according to IBES data from Refinitiv.
The company is set to post its fourth-quarter results on Jan. 29.
(Reporting by Sonam Rai in Bengaluru; Editing by Arun Koyyur and Jonathan Oatis)
By Sheila Dang and Sonam Rai