Verizon is preparing to cut approximately 15,000 jobs, representing about 15% of its U.S. workforce, as part of a broad restructuring under its newly-appointed CEO, Dan Schulman.
The cuts are expected to begin imminently (from next week) and will also involve converting some of Verizon’s corporate-owned retail stores into franchises, thereby moving employees off Verizon’s direct payroll.
Verizon had about ~100,000 U.S. employees as of early 2025; the 15,000 job reduction thus marks one of its largest workforce reductions ever.
Why Verizon is doing this
- Verizon has been struggling with slowing subscriber growth, particularly in its wireless segment. For example, it added just ~44,000 net post-paid wireless customers in a recent quarter — far behind peers.
- Competition is intensifying from rivals such as AT&T Inc., T‑Mobile US, Inc., and cable/fibre players bundling services.
- Under CEO Dan Schulman’s leadership, Verizon is signalling a sharp pivot: “We will be a simpler, leaner and scrappier business.”
- The move to franchise ~180-200 stores also reflects a shift in its retail footprint, which can reduce fixed costs and convert some roles to variable cost franchise operations.
Implications
For the company
- The cost savings from the job cuts and store conversions will likely improve Verizon’s operating margin and provide cash for strategic priorities (e.g., network build-out, 5G/edge infrastructure).
- However, reducing workforce and changing the retail model come with execution risk: customer experience must be maintained amid transitions.
- The market reaction is cautiously positive: shares rose slightly on the news.
For employees
- With ~15% of the workforce targeted, many jobs (particularly in non-union management and corporate roles) are at risk. The report states more than 20% of non-union management may be affected.
- Retail store employees face risk not only from layoffs but also from store conversions to franchise models which shift employment off Verizon’s books.
For the telecom industry
- This move reflects broader pressures in mature telecom markets: slower growth, high capital expenditures (for 5G, fibre, AI/edge) and the need to improve operational efficiency.
- Other telecom firms may feel similar pressures and could announce cost-cuts or strategic refocusing.
- Consumer experience, pricing strategy, and competitive positioning will become even more critical: cost-cuts cannot come at the expense of service quality.
What to watch next
- Official confirmation: Verizon has yet to publicly detail the final headcount or timeline; reports say ~15,000 but could be up to ~20,000.
- Timing & phases: When exactly will the cuts roll out? Which business units will be most affected (management vs retail vs support)?
- Impact on customer service and retention: Will the cuts weaken customer experience and lead to higher churn?
- Use of cost savings: Will Verizon reinvest in network upgrades, new services (e.g., AI/edge), or return capital to shareholders?
- Market reaction and competitive dynamics: How will rivals react? Will this move help Verizon become more competitive on pricing, service, or bundling?
Conclusion
Verizon’s plan to lay off around 15,000 employees represents a substantial restructuring effort under newly-appointed CEO Dan Schulman. Faced with slowing growth, intensifying competition and high infrastructure costs, the company is taking bold steps to streamline operations, reduce its footprint and shift towards a leaner cost model.
While the move has the potential to re-balance Verizon’s cost base and improve competitiveness, its success will hinge on effectively managing the transition without degrading customer experience or employee morale.
