Verizon announced Thursday that it will cut more than 13,000 jobs as part of a major restructuring effort. The layoffs mark Verizon’s largest single workforce reduction to date. The company also revealed plans to convert 179 corporate-owned retail stores into franchised operations and close one store. These moves are aimed at reducing costs and realigning operations for future growth.
In a filing, Verizon stated it expects to incur a severance charge of $1.6 billion to $1.8 billion in the fourth quarter. The company also noted that over 80% of the affected employees will leave next month. Verizon’s shares fell 1% in response to the news. CEO Dan Schulman emphasized the need to simplify operations to improve customer experience and reduce friction.
Schulman, who became Verizon’s CEO in October, explained that the company’s current cost structure limits its ability to invest in customer-focused initiatives. He said the layoffs are part of a broader strategy to reduce outsourced labor and lower expenses. Verizon also confirmed that the job cuts are not related to the company’s use of artificial intelligence (AI).
The company plans to establish a $20 million career transition fund to assist laid-off employees. Schulman added that the fund would help workers develop skills necessary for the evolving job market, particularly in AI. Verizon’s decision to reduce its workforce comes amid increasing market pressure from competitors like T-Mobile and AT&T, which have been attracting more customers with aggressive promotions.
Verizon’s workforce reductions are part of a larger effort to regain its competitive edge. The company had about 100,000 employees in the U.S. at the end of 2024, with 70,000 being non-union workers. Verizon had previously cut nearly 20,000 jobs over the past three years as it sought to restructure its business in a competitive telecommunications landscape.
