Verizon to take about $2 billion in charges for planned layoffs

The Verizon logo is seen on the side of a truck in New York City, U.S., October 13, 2016. REUTERS/Brendan McDermid

(Reuters) – Verizon Communications Inc (VZ.N) will take a charge of $1.8 billion to $2.1 billion in the current quarter, with nearly half of the layoffs announced on Monday set to come into effect in December, the U.S. wireless carrier said.

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 the length of their service.

The New York based-company said the charges were mainly on account of the layoffs announced on Monday as well as other headcount reductions.

Verizon, which had 152,300 employees as of 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 charges in the fourth quarter would come to $1.3 billion to $1.6 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 results on Jan. 29.

Reporting by Sonam Rai in Bengaluru; Editing by Arun Koyyur

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