U.S. wireless giant Verizon is set to cut more than 13,000 jobs, marking the largest layoff in the company’s history, as it aims to streamline operations, reduce costs, and adapt to a fiercely competitive telecom market.
The company also plans to convert 179 corporate-owned retail stores into franchised locations and close one store, part of a broader effort to simplify operations and focus on customer value, Reuters news report said.
CEO Dan Schulman Outlines Vision for Restructuring
Verizon’s new CEO, Dan Schulman, who joined the company in October from PayPal, sent a note to employees highlighting the need to simplify operations to address complexity and friction that slow us down and frustrate our customers.
“Our current cost structure limits our ability to invest significantly in our customer value proposition. We must reset, restructure, and realign our priorities to regain leadership as a communications provider,” Dan Schulman said.
A company spokesperson confirmed the job cuts, emphasizing that the decision represents a strategic opportunity to refocus Verizon’s business and prepare for the future, particularly in the age of AI.
Support for Affected Employees
To help impacted employees, Verizon is establishing a $20 million career transition fund aimed at reskilling workers and preparing them for future opportunities. Dan Schulman clarified that the layoffs are not a result of AI implementation, but part of broader cost-cutting and operational restructuring efforts.
Verizon Faces Growing Market Pressure
The layoffs come amid mounting pressure on Verizon’s business. The company added 44,000 monthly bill-paying wireless subscribers in the third quarter, trailing rivals AT&T and T-Mobile, which added over a million net subscribers combined.
Industry analysts point to aggressive promotions by competitors, including discounted plans and trade-in offers tied to new iPhone launches, as factors driving Verizon to adjust its workforce and cost structure.
A History of Workforce Reductions
Verizon, which employed around 100,000 people in the U.S. at the end of 2024—including about 70,000 non-union workers—has already cut nearly 20,000 jobs over the past three years.
The company has also invested heavily in network expansion, spending $52 billion on midband spectrum in 2021 to enhance its 5G offerings, acquiring Frontier Communications for $20 billion last year, and purchasing TracFone Wireless for $6 billion.
Dan Schulman, while announcing the Q3-2025 result, said Verizon is undergoing a transformation focused on growth, efficiency, and shareholder value. The company plans to leverage AI to improve customer experience, streamline operations, and reduce costs while narrowing its focus on key growth areas and exiting non-profitable legacy businesses.
Dan Schulman is reassessing operating expenses, capital spending, and allocation to optimize financial structure, maintain the dividend, reduce debt, and support strategic investments. Key priorities include delighting customers to boost market share, transforming costs, improving capital efficiency, and accelerating shareholder returns through stronger bottom-line growth.
Looking Ahead
Dan Schulman’s restructuring plan signals a major pivot for Verizon as it navigates a competitive U.S. telecom landscape, balancing cost control with the need to innovate and remain attractive to consumers. The coming months will show whether these bold moves help Verizon regain momentum against its rivals.
Baburajan Kizhakedath
