Verizon plans to cut over 13,000 jobs in latest restructuring move

Big changes at Verizon

You might have noticed that many major companies have been cutting jobs recently. Verizon has announced its largest single layoff in company history, cutting just over 13,000 U.S. jobs. Earlier reports put the number near 15,000, which explains the varying percentages cited in the media.

This decision highlights the intense pressures even industry leaders face. It will impact thousands of employees and their families. The move is part of a major restructuring effort to streamline the company’s operations and reduce costs in a highly competitive market.

A new captain’s course

Dan Schulman became Verizon’s chief executive on October 6, 2025, after serving as PayPal’s CEO and as Verizon’s lead independent director since 2018. Schulman served on Verizon’s board for years before stepping into the top job.

He immediately promised bold action to change the company’s direction. His vision is to make Verizon a “simpler, leaner, and scrappier” business. This involves a fundamental restructuring of the company’s expense base to improve agility and competitiveness.

Stores shift to franchises

Not all job losses will come from direct layoffs. Verizon plans to convert 179 corporate-owned retail stores into franchised operations and close one other store, moving those employees off Verizon’s payroll.

Employees at these stores will no longer be on Verizon’s payroll. They will become employees of the new franchise owners. This strategy helps Verizon reduce its direct operational costs and shift the responsibility of store management.

The competitive squeeze

Verizon is facing intense pressure from rivals in the wireless and internet markets. Competitors like T-Mobile and AT&T have been aggressively poaching customers with attractive plans.

Verizon reported large postpaid phone net losses across 2025, including about 356,000 in the first quarter, while rivals picked up net additions in some periods.

Cable companies like Comcast and Charter have also entered the mobile space. They bundle services, creating another fierce competitor. This crowded marketplace is squeezing Verizon’s subscriber growth and profitability.

The customer drain

Verizon’s subscriber troubles are a persistent problem. The company has reported losing valuable postpaid phone customers for three consecutive quarters. These subscribers are highly prized because they typically sign long-term contracts and provide steady revenue.

At the same time, the trend of cord-cutting continues to impact its business. Many customers are canceling traditional cable TV services, another area where Verizon competes. This shift to streaming platforms presents another challenge to its revenue streams.

Part of a bigger trend

Verizon is not alone in announcing major workforce reductions. The tech and retail sectors have seen similar headlines this year. Amazon recently confirmed it was cutting 14,000 corporate jobs to streamline its operations.

Other giants like IBM and UPS have also announced thousands of job cuts. This indicates a broader trend of companies restructuring to adapt to economic shifts. They are focusing on efficiency and new strategic priorities like artificial intelligence.

Who is most affected?

Verizon said the cuts will target largely non-union management positions and will eliminate more than 20 percent of those managerial roles, according to company communications and reporting.

The geographic impact is still unclear, especially for states like New Jersey, where Verizon has a large operational presence. The company does not maintain a detailed state-by-state employee list, so local effects will only become clear once the process begins.

Investors react calmly

Shares rose modestly after the news, increasing roughly 1.5 percent in early trading as investors digested the restructuring plans. Investors often view large cost-cutting measures as a positive step toward improving future profitability.

However, the stock’s performance over the last few years has been stagnant. Its small year-to-date gain greatly lags behind the broader market’s strong performance. This reflects the long-standing challenges the company has been navigating.

A history of trimming

While this is Verizon’s single largest layoff event, it is not its first. The company has a history of periodically reducing its workforce to manage costs.

More recent cuts included 4,800 jobs in 2024 and 10,400 back in 2018. This pattern shows a continued effort to control expenses, but the current plan is the most aggressive and wide-sweeping in the company’s history.

A wider economic wave

Verizon’s announcement fits into a much larger economic picture. Challenger Gray and Christmas reported that U.S. employers announced 153,074 job cuts in October 2025, the largest October total in more than 20 years, reflecting a broader wave of announced layoffs.

This suggests that economic pressures are affecting numerous industries beyond just telecom. Companies across the board are making difficult adjustments in response to inflation, shifting consumer habits, and higher operational costs.

A promise on prices

CEO Dan Schulman has made an important promise to customers regarding future bills. He has stated that his new strategy will not rely on raising prices for consumers. He admits the company’s past growth depended too heavily on this approach.

Instead, he wants to build a more sustainable model focused on attracting new subscribers. The goal is to win customers through improved service and value, not just by charging existing users more money each month.

An analyst’s perspective

Financial experts see these cuts as a necessary, if difficult, step for Verizon. One analyst noted the company had to break out of a “death loop” of customer losses and price increases. With revenue growth challenging, cutting costs becomes the primary option.

This path is seen as essential for the company to meet its financial targets. The restructuring is a direct attempt to stop the cycle of subscriber loss and reposition the company for a more competitive future.

It all raises a bigger question: what does this mean for you as a customer? Find out how your Verizon call logs might not be safe.

Redefining the giant

The Verizon emerging from this restructuring will likely be a different company. It will have a significantly smaller direct workforce and fewer corporate-run stores. The goal is to create a more agile and efficient organization capable of quicker decisions.

This transformation represents a pivotal moment for the telecom leader. For customers and employees, it begins a period of substantial change and uncertainty. The success of this bold strategy will determine Verizon’s position in the market for years to come.

This new strategy is already in motion. See how Verizon’s acquisition of Starry is accelerating its wireless internet ambitions.

What’s your take on these major changes at Verizon? Drop your thoughts in the comments, and if you found this insightful, give it a like.

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This slideshow was made with AI assistance and human editing.