Verizon is making a difficult choice that could potentially improve its future.
Verizon is becoming leaner and more efficient.
Verizon intends to cut costs and streamline operations to better serve customers, resulting in over 13,000 layoffs, according to CEO Dan Schulman in a staff memo obtained by Light Reading.
Schulman stated in November 2025 that the existing cost structure hinders investment in customer value. He added that the entire company must focus on providing for and satisfying customers and align teams and resources to create value and build a more proactive Verizon by simplifying operations.
The company plans to reduce spending on outside labor and direct resources toward new growth opportunities. Leaders will soon communicate new organizational structures.
Verizon acknowledges the laid-off employees' contributions and is providing a $20 million Reskilling and Career Transition Fund to help with training and job placement.
Additionally, 179 stores will become franchises, and one retail location will be closed. A company spokesperson said in November 2025 that this is an opportunity for Verizon to restructure and realign priorities to regain its position as a leading communications provider.
This is Verizon's largest-ever workforce reduction. As of February, the company employed 100,000 people. The job cuts are expected to reduce expenses for nonunion employees by about 20%, according to The Wall Street Journal.
Schulman succeeded Hans Vestberg in October after three quarters of customer losses. While still the largest US carrier by subscribers, Verizon is at risk of losing its lead to T-Mobile.
The company's strategy of using price increases to boost revenue ultimately failed, leading to customer decline. Schulman aims to reverse this trend.
These cost-cutting measures may improve efficiency, but the scale of Verizon's actions raises concerns. The company recently hired Alfonso Villanueva as Executive Vice President, Chief Transformation Officer, to oversee the development of digital infrastructure for AI and automation.
While this strategy resembles T-Mobile's approach, Verizon's focus on value without addressing high prices may undermine its efforts. Similarly, franchised stores and AI tools could negatively impact customer service.
In the short term, these measures may prove beneficial, but Schulman will likely need more innovative solutions for Verizon to maintain its position.