In a significant restructuring move, Verizon is planning to cut approximately 15,000 jobs, marking the telecommunications giant’s largest layoff ever. The cuts, which will affect about 15% of the company’s workforce, are set to begin as early as next week, according to USA Today.
This dramatic workforce reduction comes just weeks after Dan Schulman, former PayPal CEO, took the helm of Verizon in early October 2025.
Strategic Shift
The layoffs will primarily target non-union management positions, reducing those ranks by more than 20%, while also including plans to convert approximately 180–200 corporate-owned retail stores into franchised operations. This strategic shift removes these locations from Verizon’s direct payroll while maintaining brand visibility in local markets.
Wall Street responded well to the announcement, with Verizon shares rising about 1.5% following the news. However, this modest increase highlights the company’s challenging position—Verizon stock has gained only around 8% over the past three years, significantly underperforming compared to the S&P 500’s nearly 70% rise during the same period.
Schulman’s Bold Vision
Schulman, who joined Verizon’s board in 2018 and was named lead independent director in 2024 before his appointment as CEO, brings a wealth of experience in both telecommunications and financial technology sectors. Since taking over as CEO, he has emphasized the need for “aggressive change.”
In a recent earnings call, Schulman called for “a full reboot of what Verizon means in the marketplace,” stressing that the company needs to transition from being technology-focused to customer-focused. His strategy centers on delighting customers with better value propositions rather than relying on price increases, which had been the company’s approach under previous leadership.
Market Pressures Behind The Cuts
The telecommunications giant faces mounting market pressure amid a shrinking pool of new customers, as rivals offer more competitive plans and cable operators enter the wireless space. The company’s position has eroded in recent years, with subscriber growth lagging behind that of its competitors.
In the third quarter, Verizon added just 44,000 monthly bill-paying wireless subscribers, far behind AT&T and trailing significantly compared to T-Mobile, which added more than 1 million net subscribers. Cable companies like Comcast and Charter have further complicated the market by bundling mobile plans with high-speed internet services.
Verizon Chairman Mark Bertolini recently acknowledged the company’s decline, noting that “Verizon has gone from number one in market cap, bond ratings and market share to number three.” He added that the network is no longer as differentiated as it once was, partly because all major carriers have invested heavily in 5G infrastructure.
Employee Impact And Industry Reaction
For Verizon’s 100,000 U.S. employees, this restructuring continues a troubling trend of workforce reductions. The company has cut almost 20,000 jobs over the past three years, including 4,800 employees through a voluntary program last year that resulted in a nearly $2 billion charge.
Industry analysts see the job cuts as a necessary step to fund customer retention efforts. Craig Moffett, senior analyst at MoffettNathanson, noted that Schulman’s first priority is to stop losing customers, which will require subsidizing expensive handsets for subscribers.
As he reshapes the company for a more competitive future, employees, investors, and customers alike are watching closely to see if his bold strategy can reverse Verizon’s fortunes in an increasingly challenging telecommunications landscape.
