Verizon may make a decision that will disappoint both its customers and employees.

Sources claiming to be Verizon employees suggest the company may announce widespread layoffs on November 20. While the specific divisions affected are unconfirmed, there is related discussion of potential store closures, implying that retail staff may be impacted. One employee indicated that some corporate positions could also be eliminated.

Reports suggest Verizon intends to close stores and reduce its workforce.

According to internal sources, the planned reductions appear to be due to Verizon's strategy to outsource roles to AI systems, potentially making numerous employees unnecessary.

In June, Verizon introduced Project 624, an AI-driven initiative to revamp customer care. The company presented it as a significant investment in AI to improve customer service.

At the time, Verizon stated that human agents would remain part of its efforts to provide enhanced, personalized customer support. It also emphasized its large retail presence, noting that 93% of the population lived within 30 minutes of a Verizon store.

Companies typically do not disclose potential workforce reductions in advance. With customer service responsibilities potentially transitioning to AI, Verizon may believe it can operate with fewer employees.

Verizon's CEO, Dan Schulman, is reportedly prioritizing efficiency to lower expenses, as the company has experienced customer losses for three consecutive quarters and is shifting away from relying on price increases to boost revenue.

Schulman has pledged to implement significant changes to maintain customer satisfaction. However, replacing human agents with AI could be counterproductive, as many Verizon customers have expressed dissatisfaction with AI interactions. While AI technology has advanced, some situations still require human judgment.

Conversely, some customers may prefer avoiding interactions with sales representatives.

T-Mobile has been discouraging in-store visits for some time. With Verizon seemingly moving in a similar direction, the telecommunications industry is undergoing a fundamental, AI-driven transformation in customer service methods.