Verizon Faces $6.7B in Q4 Charges on Oath Biz & Layoffs
Verizon says that it will face charges of around $6.7 billion in the fourth quarter of this year, based on weakness of its Oath media business, as well as the cost of 10,400 voluntary layoffs at the operator,
Verizon reported in the filing that the Oath business -- made up of its AOL and Yahoo businesses -- "experienced increased competitive and market pressures throughout 2018 that have resulted in lower than expected revenues and earnings." The operator expects these pressures to continue.
Verizon says that it will take a $4.6 billion goodwill impairment charge in the fourth quarter as the company's media business fails to meet expectations. (See Verizon Restructures in Bid for 5G Growth.)
Meanwhile, Verizon is expecting a $1.8 billion to $2.1 billion severance charge related to 10,400 voluntary layoffs announced yesterday by the operator. (See Verizon Buyout Offer Will Cull More Than 6% of Employees by July 2019.)
"Approximately 10,400 eligible employees will separate from the Company under this program by the end of June 2019, with nearly half of these employees exiting in December of 2018," Verizon said in the filing.
— Dan Jones, Mobile Editor, Light Reading