Verizon is making a bold move to reshape its future by announcing layoffs of over 13,000 employees, according to a memo from CEO Dan Schulman obtained by Light Reading. This significant restructuring aims to cut costs, simplify operations, and sharpen the company’s focus on delivering exceptional customer value under new leadership.
Verizon’s Leadership Challenge
With its dominance in the industry slipping, Verizon’s new CEO Schulman addressed employees at an all-hands meeting, emphasizing the urgent need for evolution to better satisfy customers and reclaim market leadership. He noted that the company’s current cost structure is a major barrier to meaningful investment in customer-centric innovation.
"Our current cost structure limits our ability to invest significantly in our customer value proposition. We must reorient our entire company around delivering for and delighting our customers."
To streamline its business, Verizon will reduce outsourced labor and transition 179 retail stores to franchise operations while closing another outlet. This transformation requires difficult decisions, including the extensive layoffs, but reflects a prioritization of long-term customer experience over short-term convenience.
Supporting Impacted Employees
Recognizing the contributions of departing staff, Verizon is committing $20 million to a Reskilling and Career Transition Fund aimed at helping former employees develop new skills and find employment opportunities.
Facing Intense Market Pressure
This downsizing represents the largest in Verizon’s history. With a workforce of about 100,000 as of February 2025, the cuts will reduce expenses among nonunion employees by approximately 20%. The leadership change came after three consecutive quarters of customer losses. Although Verizon remains the biggest US carrier by subscriber count, it risks falling behind T-Mobile in the near future.
Mixed Reactions and Future Outlook
Public sentiment is divided on whether Verizon’s approach will resolve its challenges. A recent poll showed 65% of respondents pessimistic about layoffs improving the situation, while 25% believe customer frustrations remain unaddressed, and only 10% see these steps as tackling the root problems.
What Lies Ahead
Recent executive hires, including Alfonso Villanueva as Chief Transformation Officer, signal Verizon’s intent to reshape its strategy. Yet, critics caution the company risks overlooking fundamental issues such as high pricing and reliance on AI and franchising, which may degrade customer service quality. While cost-cutting and operational simplification may offer short-term relief, Verizon’s ability to innovate and creatively address customer needs will be key to sustaining its market position.
Verizon spokesperson, November 2025: "This is an opportunity for Verizon to reset, restructure, and realign our priorities in ways that will help us regain our leadership as a communications provider."
