Telecoms behemoth Verizon has confirmed a sweeping corporate overhaul, announcing it will lay off more than 13,000 employees as part of a drastic effort to reshape its business.
A New Direction Under CEO Schulman
The massive job cuts were officially initiated on Thursday, 20 November 2025, according to an internal staff memo from Verizon CEO Dan Schulman that was seen by The Associated Press. Schulman, a former PayPal boss who took the helm at Verizon in early October, stated that the company's current cost framework was hindering its ability to invest, particularly in areas that would improve the customer experience.
In his communication, Schulman emphasised the urgent need for change. "We must reorient our entire company around delivering for and delighting our customers," he wrote. He further detailed that the objective is to streamline operations to tackle the "complexity and friction" that currently frustrate customers and slow the business down.
Beyond Layoffs: Broader Cost-Cutting Measures
The restructuring extends far beyond the workforce reduction. The New York-based company also revealed plans to convert 179 of its corporate-owned retail stores into franchised operations and to close one store entirely. Furthermore, Verizon intends to make significant reductions in its spending on outsourced and other external labour.
This move follows reports from last week that Verizon was preparing to cut approximately 15,000 positions. The cuts are primarily aimed at its non-union management ranks and are expected to impact more than 20% of that segment of the workforce.
Sustainable Growth Over Price Hikes
Schulman, who had served on Verizon's board for seven years before becoming CEO, has been vocal about his new strategy. He has stated he does not wish to raise prices and is instead seeking to build a more customer-centric organisation.
"Our financial growth has relied too heavily on price increases," Schulman remarked last month. "A strategic approach that relies too much on price without subscriber growth is not a sustainable strategy." This is a significant shift for a company known for having the highest price points in the sector, a position analysts like Craig Moffett of MoffettNathanson believe is difficult to maintain amid fierce competition.
Moffett noted that the new CEO's immediate priority is to stop the bleeding from subscriber churn, a task that will likely require subsidising expensive handsets for a large portion of Verizon's customer base to prevent them from leaving for rivals.
