(MENAFN) US-based telecommunications company Verizon declared on Thursday that it plans to reduce its workforce by more than 13,000 employees as part of efforts to restructure and "evolve as a company" while lowering operational expenses.

In a company-wide memo, CEO Dan Schulman stressed the importance of adapting and evolving to better satisfy customer demands and strengthen the firm’s position in the market.

"Our current cost structure limits our ability to invest significantly in our customer value proposition. We must reorient our entire company around delivering for and delighting our customers," he wrote, highlighting the focus on enhancing customer experience.

Schulman explained that simplifying operations is essential, noting that the company will begin the process of laying off over 13,000 staff members while also cutting back considerably on outsourcing and other external labor expenditures.

He acknowledged that technological advancements and economic shifts are affecting workforces across all industries, signaling broader challenges beyond Verizon itself.

To support affected employees, Verizon is establishing a $20 million career transition fund, allowing them to concentrate on "opportunities and necessary skill sets as we enter the age of AI," according to Schulman.

By the end of 2024, Verizon employed 99,600 people, based on figures from its 2024 annual report.

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