TLDR
- Verizon is cutting more than 13,000 jobs in its largest single layoff ever, representing 20% of non-union employee wage costs
- New CEO Dan Schulman says the current cost structure limits investment in customer value and is implementing a major restructure
- The company lost 7,000 retail postpaid phone customers in Q3 and added only 44,000 monthly subscribers, lagging behind AT&T and T-Mobile
- Verizon will convert 179 company-owned retail stores to franchise operations and close one store
- The company is creating a $20 million fund to help laid-off workers with job searches and skills training for the AI era
Verizon confirmed Thursday it will eliminate more than 13,000 positions across the organization. The cuts represent approximately 20% of the company’s non-union employee wage costs.
Verizon Communications Inc., VZ
New CEO Dan Schulman announced the layoffs in an email to staff. The message, titled “Building a stronger Verizon,” outlined plans to reduce outsourced labor expenses as well.
Schulman took over as CEO in early October. He replaced Hans Vestberg, who led the company since mid-2018.
Under Vestberg’s tenure, Verizon stock declined 15%. The transition announcement itself sent shares down 5.1% on October 6.
The job cuts mark Verizon’s largest single layoff to date. The company previously eliminated approximately 4,800 management positions through a voluntary separation program that concluded in March.
Struggling Subscriber Numbers
Verizon faces mounting pressure in a competitive wireless market. The company lost a net 7,000 retail postpaid phone customers during the third quarter.
The carrier added just 44,000 monthly bill-paying wireless subscribers in Q3. That figure trails AT&T’s performance and falls far behind T-Mobile’s more than 1 million net subscriber additions.
Schulman told employees the company needs to “reorient” and change its cost structure. He wrote that current expenses limit Verizon’s ability to invest in its customer value proposition.
“We must simplify our operations to address the complexity and friction that slow us down and frustrate our customers,” Schulman stated in the note.
Retail Store Changes
The restructuring extends beyond employee cuts. Verizon plans to convert 179 corporate-owned retail stores into franchised operations.
The company will close one store as part of the transition. This shift moves more retail responsibility to franchise partners.
Schulman established a $20 million career transition fund for affected employees. The fund will focus on job search assistance and skills training for the AI era.
Verizon clarified the layoffs are not result of AI implementation. The fund aims to help workers prepare for changing job market demands.
A company spokesperson called this “an opportunity for Verizon to reset, restructure and realign our priorities.” The goal is to help the company regain leadership as a communications provider.
Verizon had approximately 100,000 U.S. employees at the end of 2024. About 70,000 were non-union workers.
The company has reduced headcount by almost 20,000 jobs over the past three years. The new cuts accelerate that trend under new leadership.
Schulman, a Verizon board member since 2018, previously served as CEO of PayPal and Virgin Mobile USA. He faces immediate pressure from rival promotions around new iPhone launches.
Both AT&T and T-Mobile have rolled out aggressive discounts and trade-in deals. This competitive environment comes as the pool of new wireless customers shrinks.
Verizon spent $52 billion in 2021 to acquire wireless midband spectrum for 5G network improvements. The company also finalized a $20 billion deal to acquire Frontier Communications last year and spent $6 billion on TracFone Wireless.
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