Job cuts are expected to hit one of the world’s largest telecommunications companies just over a month after crowning its new CEO.
The company also plans to shift about 200 stores to franchises, moving affected employees off of its payroll, the report said.
Verizon did not immediately respond to Fortune’s request for comment.
The cost-cutting efforts come just a month after Daniel Schulman, who has been serving almost eight years as the company’s lead independent director, assumed the CEO role.
In the third quarter, Verizon saw a decrease of about 7,000 mobile phone lines under postpaid contracts, or accounts where customers are billed monthly after using wireless services, as opposed to prepaid plans where customers pay in advance. Wall Street analysts had forecasted a gain of 19,000 postpaid contracts.
This was its third consecutive quarter losing postpaid phone subscribers.
“We have a tremendous amount of opportunity to be more efficient, to be scrappier,” Schulman said on the earnings call. “Cost reductions will be a way of life for us here.”
It’s “possible—if not probable—that Verizon can improve operating and financial performance over time while remaining a rational actor in the marketplace,” they wrote.
