Verizon is preparing its largest round of layoffs, with about 15,000 jobs expected to be cut as early as next week, according to a person familiar with the plan. Reuters reports this will be one of the first major moves by the company’s new chief executive as he seeks to reshape the business amid intense competition in the wireless market.
For years Verizon has faced pressure to retain customers who are being lured away by rivals offering lower-priced plans. More recently, cable companies have intensified that pressure by bundling mobile service with home internet at competitive prices. A Verizon spokesperson declined to comment on the layoffs or the company’s broader plan.
The cuts are expected to affect roughly 15% of Verizon’s U.S. workforce and will fall hardest on non-union management positions, which are forecast to shrink by more than 20%. The company also plans to convert about 180 company-owned retail stores into franchised locations, part of an ongoing effort to reduce operating costs.
Dan Schulman, who became CEO in early October after a long tenure at PayPal, stepped into the role as AT&T and T-Mobile ramp up aggressive discounting—especially around new iPhone launches. Those promotions aim to retain current customers and attract new subscribers, areas where Verizon has recently lost ground.
Last month, Schulman said Verizon needs significant change, calling for a “cost transformation” and a reset of spending priorities. “We will be a simpler, leaner and scrappier business,” he said, signaling a shift in strategy.
The urgency behind the restructuring is underscored by recent subscriber numbers. In the third quarter, Verizon added just 44,000 monthly bill-paying wireless customers, trailing competitors. AT&T added more customers, while T-Mobile posted more than 1 million net additions. Cable operators such as Comcast and Charter have also chipped away at the market by offering mobile plans bundled with internet service.
Investors reacted modestly to the layoff news: Verizon’s shares rose about 1.5%. The stock, however, has been largely flat over the past three years, gaining roughly 8% compared with nearly a 70% rise in the S&P 500 during the same period.
Schulman, who served on Verizon’s board for seven years before taking the CEO role, has emphasized a customer-focused approach and less reliance on price increases. Verizon still carries the highest pricing among the major U.S. carriers.
“Our financial growth has relied too heavily on price increases,” he said. “A strategic approach that relies too much on price without subscriber growth is not a sustainable strategy.”
At the end of 2024, Verizon had about 100,000 employees in the United States, a decline of nearly 20,000 over three years. Last year the company reduced headcount by 4,800 through a voluntary separation program and recorded a related charge of nearly $2 billion. A similar program in 2018 resulted in roughly 10,400 employees leaving.
Analyst Craig Moffett of MoffettNathanson said Schulman’s priority is to stem customer losses, which likely means offering costly device subsidies to many subscribers. “The obvious question was how Verizon planned to pay for that. Now we know,” Moffett said, while noting it remains uncertain whether workforce reductions will offset the higher spending needed to retain customers.
Verizon has also incurred sizable expenses in recent years, including $52 billion for wireless spectrum in 2021, a roughly $20 billion acquisition of Frontier Communications assets, and a $6 billion purchase of TracFone Wireless. The Wall Street Journal first reported Verizon’s planned layoffs.
(Photo by José Matute)
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