Verizon cutting more than 13,000 jobs as it restructures
Verizon has announced its largest layoff to date, cutting over 13,000 jobs as part of a restructuring effort aimed at reducing costs and simplifying operations. The decision comes amid increasing competition and market pressures, particularly as rival companies offer more attractive plans. New CEO Dan Schulman emphasized the need to streamline operations to improve customer satisfaction and regain competitive edge. To support affected employees, Verizon will establish a $20 million career transition fund, although the layoffs are not directly linked to the company's adoption of artificial intelligence. Moving forward, Verizon aims to realign its priorities while navigating a challenging telecommunications landscape.
Dive Deeper:
Verizon's job cuts represent a significant effort to address its cost structure, which has been limiting the company's ability to invest in customer value initiatives.
The layoffs predominantly affect the U.S. workforce, with reports indicating that Verizon had approximately 100,000 employees at the end of 2024.
The company plans to convert 179 corporate-owned retail stores into franchised operations as part of its restructuring strategy.
Despite the layoffs, Schulman clarified that the job cuts are not a direct result of the company's use of AI technologies.
In the third quarter, Verizon added only 44,000 monthly bill-paying wireless subscribers, significantly lagging behind competitors AT&T and T-Mobile, which reported stronger growth.
In recent years, Verizon has already reduced its workforce by nearly 20,000 positions, indicating ongoing operational challenges.
The telecommunications giant has invested heavily in its 5G network, spending $52 billion on acquiring midband spectrum and striking significant deals to acquire companies like Frontier Communications and TracFone Wireless.