Verizon Communications Inc. officially confirmed the largest single round of layoffs in the company’s history. In an internal memo sent to staff, CEO Dan Schulman announced the elimination of more than 13,000 positions, a move designed to streamline operations and combat stalling growth in a fiercely competitive wireless market.
Key Points
- Scale of Cuts: Over 13,000 employees are affected, primarily targeting non-union roles. This represents approximately 20% of non-union wage costs.
- Strategic Shift: The restructuring is driven by a need to reduce operational complexity and free up capital for enhancing customer experiences, rather than directly automating AI.
- Retail Impact: 179 company-owned stores will be converted to franchise operations.
- Support Package: Verizon introduced a novel $20 million Reskilling and Career Transition Fund specifically focused on AI-era skills for departing employees.
The “Faster, Leaner” Strategy
The layoffs mark a decisive pivot under new leadership. CEO Dan Schulman, facing pressure from investors and intense rivalry from T-Mobile and AT&T, emphasized that Verizon’s current cost structure was unsustainable.
Despite recent efforts to stabilize, Verizon added only 44,000 net wireless subscribers in Q3 2025, significantly lagging behind competitors who have aggressively captured market share with lower prices and promotions.
“Our current cost structure limits our ability to invest significantly in our customer value proposition,” Schulman wrote in the company-wide memo. He noted that the goal is to make Verizon “faster, leaner, and more focused” by stripping away layers of management and reducing reliance on outsourced labor.
Impact on Workforce and Retail
The reduction affects roles across the entire organization. Verizon entered 2025 with roughly 100,000 U.S. employees (including ~70,000 non-union workers). This cut comes on the heels of a slow reduction of nearly 20,000 jobs over the previous three years via voluntary separation programs and smaller layoffs.
In addition to the corporate headcount reduction, the company is converting 179 corporate-owned retail locations into franchised stores, further reducing direct overhead while maintaining a brick-and-mortar presence.
A “First-of-its-Kind” Transition Fund
While cost-cutting is the primary driver, the company is attempting to differentiate its exit package by focusing on future employability.
Verizon has established a $20 million Reskilling and Career Transition Fund. Unlike standard severance packages, this fund is explicitly designed to finance training in AI-related skills and digital competencies.
“Verizon is the first company to set up a fund to specifically focus on the opportunities and necessary skill sets as we enter the age of AI,” Schulman stated. “It is my intent to also work with other companies and the public sector to address the opportunities and challenges in a world where technology will impact all of us.”
CEO Memo Highlights
In his message to the team, Schulman acknowledged the difficulty of the decision but framed it as essential for the company’s survival and future success.
“Today, we will begin reducing our workforce by more than 13,000 employees across the organization… Change is necessary, but it can be difficult—especially when it affects valued teammates. The actions we’re taking are designed to make us faster and more focused, positioning our company to deliver for our customers while continuing to capture new growth opportunities.”
Market Reaction and Context
Rumors of the layoffs had circulated a week prior, with analysts predicting cuts as high as 20,000. The confirmation of 13,000+ aligned with the lower end of those fears but still represents a massive restructuring event.
The market reaction was muted, with Verizon shares falling marginally upon the news. Investors appear to be weighing the immediate costs of severance against the long-term potential for improved profit margins and agility in 2026.
