Investing.com -- Verizon Communications Inc. announced today that it will lay off about 3,000 employees in corporate-owned retail stores as the company moves 274 locations to independent ownership.

The mobile provider said that while the affected workers will leave Verizon's payroll, many are expected to be retained by the new owners of the transferred stores. The changes will take effect on Aug. 16.

After the transition, Verizon will operate 1,000 company-owned stores. The company has an additional 5,000 stores that are independent franchises.

The job cuts follow a larger workforce reduction announced late last year, when Verizon said it would eliminate 20% of its nonunion workforce, affecting about 13,000 employees.

Chief Executive Officer Dan Schulman has stated that difficult decisions are necessary as he works to reverse a growth slump at the largest US mobile provider. He said he expects artificial intelligence technology will replace "a large percentage" of customer service work currently performed by employees. Schulman also said AI will help improve the customer experience.

Verizon recently introduced a simplified wireless service plan and launched a new loyalty rewards program that provides free and discounted deals to existing customers. The company is scheduled to report quarterly earnings on July 24.