Verizon plans major layoffs: Over 13,000 jobs to go; restructuring moves forward

Verizon Communications has announced that it will cut more than 13,000 jobs as the company starts a major restructuring plan. This is one of the largest rounds of layoffs in Verizon’s recent history. The company says it needs to reduce costs, improve operations, and respond to growing competition in the wireless market.

CEO Dan Schulman, who joined Verizon in October after leading PayPal, said the company must make these cuts to fix long-standing operational problems. He told employees that Verizon’s current structure is too complex and slows down decision-making. Schulman said Verizon cannot invest enough in customer service and network improvements unless it reduces its workforce and limits outside labor spending.

Verizon employs about 100,000 workers in the United States, including roughly 70,000 non-union employees. Most of the planned layoffs will come from this group. The company has already cut nearly 20,000 jobs over the last three years, and this new round continues that trend. Verizon says the cuts are needed for long-term financial stability.

Along with job cuts, Verizon will convert 179 corporate-owned stores into franchised locations. One store will close permanently. A company spokesperson said these changes are part of a push to “realign priorities” and make the business more efficient. Verizon believes a leaner structure will help it improve customer experience and simplify retail operations.

To help affected employees, Verizon will create a $20 million career transition fund. This program will help workers learn new skills and explore job options in fields such as technology and digital services. Schulman said the cuts are not connected to AI. He stressed that the layoffs are happening because the company needs simpler and more efficient operations.

Verizon is facing tough competition from AT&T, T-Mobile, and cable companies entering the wireless market. In Q3 of this year, Verizon added only 44,000 wireless subscribers who pay monthly. AT&T gained far more, and T-Mobile added more than one million. This slow growth has increased pressure on Verizon to cut costs and rethink its strategy.

Verizon has spent large sums in recent years to expand its network. Major investments include $52 billion for midband spectrum in 2021, $20 billion to buy Frontier Communications, and $6 billion for prepaid carrier TracFone Wireless. These purchases were meant to secure Verizon’s future, but they also created financial pressure that the company now wants to ease.