Verizon to Cut 15,000 Jobs in Largest-Ever Layoff

Verizon Communications, America’s largest wireless carrier, is preparing for its most sweeping workforce reduction in history, announcing plans to eliminate approximately 15,000 jobs—a move that represents about 15% of its U.S. employee base.

The drastic cuts are the central pillar of an aggressive corporate overhaul strategy spearheaded by new Chief Executive Officer Dan Schulman, the former PayPal boss who took the helm in early October 2025.

Sources familiar with the matter indicate that Verizon will commence the layoffs as soon as next week.

This action sends a clear signal to the market that the company is committed to fundamentally resetting its cost structure to combat intense competitive pressures.

The company, which ended 2024 with just under 100,000 U.S. employees, is aiming to become a “simpler, leaner and scrappier business,” according to Dan.

Verizon Communications Layoffs: Targeting Management Ranks and Retail Footprint

The company highly targeted the restructuring effort, focusing heavily on non-union management ranks.

Reports suggest this group will see a reduction of more than 20%, as the company seeks to flatten its organizational structure and boost agility.

Importantly, the company expects to largely spare its unionized workforce, including employees at a limited number of retail locations, from this round of downsizing.

In a parallel move aimed at reducing direct operating overhead, Verizon is also preparing to convert an estimated 180 to 200 corporate-owned retail stores into franchised operations.

While this strategy maintains the brand’s physical footprint, it shifts the responsibility for employee costs and operations away from the corporate balance sheet, further contributing to the overall reduction in the company’s direct payroll.

The New CEO’s Mandate: Shifting from Price to Growth

Dan Schulman’s appointment, replacing Hans Vestberg, followed a challenging period for Verizon marked by consecutive quarters of sluggish subscriber growth and stock performance that lagged significantly behind rivals.

Upon taking charge, Dan swiftly outlined his critical assessment of the company’s previous strategy.

“Our financial growth has relied too heavily on price increases; a strategic approach that relies too much on price without subscriber growth is not a sustainable strategy,” Schulman stated last month.

The massive job cuts will fund the new CEO’s pivot to a customer-first strategy.

This strategy focuses on maximizing value propositions and driving mobility and broadband subscriber growth through aggressive marketing and enhanced customer experience, rather than relying on premium pricing.

By “aggressively reducing our entire cost base,” Dan intends to create the necessary financial headroom to invest in customer retention and acquisition efforts.

Intense Market Pressures Drive Austerity

The need for such an aggressive cost-cutting measure stems from fierce competition in a saturated U.S. wireless market.

Verizon has been struggling to keep pace with rivals T-Mobile US and AT&T, who have successfully lured customers with cheaper bundled plans, aggressive discounts, and generous trade-in deals, particularly around new product launches.

In the third quarter, Verizon added just 44,000 monthly bill-paying wireless subscribers.

T-Mobile’s addition of more than 1 million new subscribers dwarfed this figure, and it also trailed AT&T’s performance, underscoring Verizon’s deteriorating market share.

Furthermore, cable operators like Comcast and Charter have successfully entered the mobile market by bundling wireless plans with high-speed internet, adding another layer of competitive complexity.

The market response to the news was cautiously optimistic, with Verizon shares rising slightly (around 1.5%) following the report.

Analysts view the layoffs as a necessary, albeit painful, acknowledgment of the need for structural change to restore competitive health and profitability.

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