Just two months into his tenure as Verizon’s new head honcho and CEO, Hans Vestberg is proving he’s not afraid to make bold moves. Vestberg announced today that he is restructuring the company so it will focus on three areas: consumer, business, and media. The changes will be effective January 1, and the company expects to transition its financial reporting to the new structure by the second quarter of 2019.
The company restructuring will impact Verizon’s leadership team. Heading up the consumer business will be Ronan Dunne, currently the executive vice president and president of Verizon’s wireless business. Dunne will oversee the company’s wireless and wireline businesses as well as its wireless wholesale business, which includes the company’s mobile virtual network operations (MVNOs).
Tami Erwin, the current EVP of wireless operations, will oversee the business group. That group will include wireless and wireline enterprise, small and medium business, and government business. It will also include the wireline wholesale business and Verizon Connect, which is the company’s telematics business.
Verizon Media Group or Oath, will be headed by Guru Gowrappan, who was previously named CEO of Oath.
Overseeing the company’s network and technology business will be Kyle Malady, who was named acting CTO when Vestberg was promoted from CTO to CEO in August.
In a memo to employees, Vestberg wrote that executives overseeing corporate staffing functions will remain the same. Specifically, Vestberg said that Rima Qureshi will continue to oversee strategy and new business development; Matt Ellis will remain CFO and oversee finance; Diego Scotti will head up marketing; Craig Stillman will oversee public policy, legal and security; and Marc Reed will remain chief administrative officer.
A Verizon spokesman declined to say what this restructuring will mean for company executives that are currently in charge of businesses that are now being merged together.
In his memo, Vestberg said that the restructuring is intended to help the company maintain its 5G leadership and also better position it for success with customers. He added that it will also help the company grow its “network-as-a-service” business.
Today’s restructuring is not the first sign that Vestberg is willing to make bold moves at Verizon. In late September, Verizon offered severance packages to approximately 44,000 workers as part of an effort to cut about $10 billion in costs and upgrade its network to 5G, which it said promises more efficiency.
In addition, Verizon also signed a $700 million agreement with India-based Infosys to outsource much of its IT operations. The deal is structured so that Verizon employees that currently handle those jobs become Infosys employees.