During the earnings call, Dan & company stated that they will reduce OpEx by $5 Billion in 2026 (including the 2025 layoffs).
Let’s say laying off 13,000 employees saves $2 billion a year. Where will the remaining $3 billion come from?
8 replies (most recent on top)
The CapEx reduction is a combination of Verizon and Frontier Communications. This was clearly shared during the quarterly discussion with investors.
Layoffs will result in close to $4B of OpEx reductions. This is what most analyst houses are expecting as they put out their models based on conservative estimates.
Remaining $1B is more marketing efficiencies and contract negotiations.
Reduction in services, R&D, staff, Software & support licensing, and building estates. There is far more behind the savings than the initial reduction of staff.
Hasta lat vista CWA
Saw many openings for NJ, all engineering roles. Direct hire, and full-time. I assume the hiring freeze has been lifted. Hopefully things continue along this trajectory. Closing the Frontier deal has reinvigorated things!
@OP get it correct = 13k US employees + 2k India's employees. Get the facts correct = more credibility. Additionally, need to reduce the union's footprint, = slash union jobs.
@OP it was more then 13k and a lot more then 2 billion for the head count.
Doing the math, that equals another 20k layoffs