Thirteen Thousand Positions to Be Cut as Verizon Pursues Major Operational Overhaul

Verizon Communications Inc. (VZ) is moving forward with a substantial workforce restructuring plan that will eliminate more than thirteen thousand jobs across its operations. According to a message from newly appointed CEO Dan Schulman to staff, this reduction represents approximately one-fifth of the company’s nonunion employees.

The telecommunications giant is grappling with mounting competitive pressures, having lost mobile subscribers for three consecutive quarters while lagging rivals in customer acquisition and market valuation. “Our cost structure is preventing us from fully investing in what customers truly value,” Schulman explained, underscoring the urgency behind the restructuring effort. “We need to realign the organization to focus on customer satisfaction and operational excellence.”

Retail and Workforce Changes

Beyond the employment reductions, Verizon is undertaking a significant retail transformation. The company plans to convert one hundred seventy-nine company-operated stores into franchised locations and shutter one additional location. These moves are designed to streamline overhead while maintaining market presence.

The layoffs will be implemented across all business units, with particular focus on trimming contracted and external staffing arrangements. Notifications to affected employees are slated to commence Thursday. Unionized workers, including those in select retail positions, will be protected from these cuts.

Market Context

By the conclusion of 2024, Verizon maintained a workforce of just under one hundred thousand employees. The company faces relentless competition in both wireless services and residential broadband markets, where competitors have gained ground in customer retention and growth metrics.

Schulman’s cost-cutting initiative reflects a broader strategy to realign capital allocation toward innovation and customer-facing services rather than sustaining legacy operational expenses. The restructuring underscores mounting pressure on traditional telecom carriers to demonstrate financial efficiency while competing against nimbler and better-funded market rivals.

Disclaimer: The views expressed are those of the analyst and do not necessarily represent those of Nasdaq, Inc.