Verizon Communications, under new CEO Dan Schulman, will cut more than 13,000 jobs to simplify operations and refocus on customer value. Announced Thursday via a staff memo, the move is the company’s largest workforce reduction to date and aims to reorient Verizon for greater efficiency and competitiveness.
Schulman’s memo highlighted that Verizon’s current cost structure restricts investment in customer value. He declared a company-wide reorientation centered on delivering for customers. Restructuring includes workforce reductions and limiting outsourced and external labor.
This reduction represents the largest single workforce cut in Verizon’s history. The company, which had about 100,000 full-time staff as of February according to securities filings, will cut about 20% of its nonunion management workforce. These cuts will primarily affect nonunion employees in the United States.
In addition to staff reductions, Verizon will modify its retail presence. Specifically, it plans to convert 179 corporate-owned stores into franchises and close at least one location. These steps are part of a broader overhaul aimed at creating flexibility, reducing friction in customer service, and strengthening competitiveness.
Schulman assumed the role of CEO in October, after having served on Verizon’s board since 2018 and previously leading PayPal Holdings. In a recent earnings call, he referred to Verizon as sitting at a “critical inflection point” and pledged to pursue more than incremental improvements. His strategy now includes “aggressively transforming our operations,” he said.
Verizon’s third-quarter results underscore the urgency of the changes. The company posted earnings of $4.95 billion on revenue of $33.82 billion, but it lost 7,000 postpaid wireless connections while seeing growth in prepaid services. Industry analysts say Verizon is under increasing pressure from rivals such as AT&T Inc. and T‑Mobile US, which have been gaining market share through aggressive promotions and lower-cost plans.
Notably, Verizon stressed that the layoffs are not the result of automation or the displacement of artificial intelligence. To cushion the blow for departing workers, the company is establishing a $20 million reskilling and career transition fund to help employees prepare for “the age of AI,” according to Schulman’s memo.
As the telecommunications sector becomes increasingly competitive and cost-driven, Verizon’s move signals a broader trend of industry restructuring. For Verizon, the stakes are high: its many years of heavy investment—including tens of billions spent on spectrum and acquisitions—now collide with market shifts and subscriber stagnation. Observers will closely monitor whether the aggressive restructuring can reverse the company’s recent losses and return it to leadership.
Verizon’s stock showed little reaction immediately, remaining flat, which may reflect investor caution about the magnitude of the changes and the execution risk ahead. The coming months will test Schulman’s plan: whether a leaner Verizon will be more agile, customer-focused, and competitive—or whether the cost-cutting will undermine its ability to invest and grow.
