Amid flagging profits, Verizon starts another cost-cutting program

Amid flagging profits, Verizon starts another cost-cutting program

Verizon ended a four-year, $10 billion cost-cutting program last year. And on Friday, the company announced the start of another one.

“To further mitigate inflation impacts, we’ve started a new cost-savings program that we expect will provide a reduction in annual costs of $2-3 billion by 2025,” explained Verizon CFO Matt Ellis during the operator’s Q3 2022 conference call Friday. “This program will be focused on several areas in the business, including digitalization efforts to enhance the customer experience and streamlining internal operations with automation and process enhancements.”

The first element of this effort involves the company’s new Verizon Global Services (VGS) organization, headed by the company’s top lawyer, Craig Silliman. The group will handle many of Verizon’s shared services covering areas like real estate, supply chain, public policy and information security.

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