Verizon Communications announced a 13,000‑person workforce reduction, roughly 13 % of its 100,000‑plus employees, as part of a broad cost‑cutting and restructuring program led by CEO Dan Schulman.
The layoffs will touch every part of the business, including outsourced and external labor, and will convert about 180 to 200 corporate retail stores into franchised operations. A spokesperson confirmed that roughly 20 % of the non‑unionized management workforce is included in the cuts.
Verizon is establishing a $20 million Reskilling and Career Transition Fund to provide digital training and job placement assistance to affected workers, underscoring the company’s intent to mitigate the social impact of the layoffs.
The decision follows a period of subscriber losses and margin pressure. Verizon has lost 7,000 postpaid connections in Q3 2025, its third consecutive quarterly loss in that segment, and faces intense competition from AT&T and T‑Mobile. The company’s cost structure has limited its ability to invest in customer‑centric initiatives, prompting the CEO to describe the plan as a “cost transformation” that will simplify operations and refocus the business on delivering value to customers.
In addition to workforce cuts, Verizon is accelerating its AI strategy, investing in Project 624 to streamline customer service and reduce reliance on human agents. The franchising of retail stores is intended to lower direct payroll costs and shift operational burdens to independent operators.
Market reaction to the announcement was muted, with investor sentiment remaining cautious. Analysts had anticipated a workforce reduction in the 10,000‑15,000 range; the actual 13,000 figure falls within that expectation but highlights the company’s ongoing challenges in subscriber growth and competitive positioning.
The layoffs signal a significant shift in Verizon’s strategy, moving from incremental changes to an aggressive transformation aimed at improving profitability and market share. The company’s focus on cost discipline, AI integration, and store conversion reflects a broader effort to rebuild a leaner, customer‑centric organization capable of competing in a rapidly evolving telecommunications landscape.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.