Verizon has confirmed it will incur a $5.8 billion impairment charge in the fourth quarter, due to its declining wireline business.

The carrier said it has cut financial projections for its enterprise unit, Verizon Business, which accounts for more than a fifth of its revenue.

Verizon is set to incur a hefty impairment charge. – Getty Images

Verizon Business is responsible for the company's business and government clients.

The telco said it cut its financial projections following a five-year review.

“As a result, in the fourth quarter of 2023, Verizon recorded a non-cash goodwill impairment charge of approximately $5.8 billion (before and after-tax), resulting in the goodwill balance of the business reporting unit of $1.7 billion," Verizon said.

Revenue for Verizon Business declined four percent year-on-year in Q3 2023, which it blamed on lower fixed and wireless equipment revenue.

Verizon will announce its fourth-quarter results on January 23, 2024.