With an eye on the coming 5G network era, Verizon Communications Inc. (NYSE: VZ) announced Monday morning that the company is changing its operating structure. The reorganization is among the first changes CEO Hans Vestberg has initiated since taking over on August 1.
The reorganization will result in three groups based not on technology but on customers. The three new segments are Consumer, Business and Verizon Media Group/Oath. The company’s current structure comprises two segments: Wireless and Wireline. All three business groups will be supported by a Global Network & Technology Group that will serve all the company’s operations.
Verizon’s wireline business has been shrinking and the company has been selling off pieces of it for some time. Under the new structure, the wireless business will be split and each piece also will be responsible for some wireline business.
As for the 5G future, the company likely will support both wireless and wireline 5G networking, and it makes sense for Verizon to reorganize based on customers rather than technology.
CEO Vestberg commented:
This new structure reflects a clear strategy that starts with Verizon customers. We’re building on our network transformation efforts and the Intelligent Edge architecture to deliver new customer experiences and optimize the growth opportunities we see as leaders in the 5G era. We’re focused on how our technology can benefit customers’ lives and society at large.
Verizon said that there will be no changes in leadership for companywide staff functions.
The Consumer group will be led by Ronan Dunne, currently executive vice-president and CEO of Verizon Wireless. Dunne will be running both the wireless and wireline service businesses.
Tami Erwin, currently executive vice-president for wireless operations, will head the Business group. Erwin will oversee wireless and wireline services for businesses and enterprises, as well as Verizon’s telematics business.
Guru Gowrappan, currently the CEO of Oath, will lead the Media/Oath group, and Kyle Malady, who is currently the company’s chief technology officer and chief network operations officer, will lead the global network and technology group.
The reorganization becomes effective in January, and Verizon will begin reporting financial results under the new structure beginning with the second quarter of 2019, according to a report in The Wall Street Journal.