Verizon is cutting more than 13,000 jobs as it works to ‘reorient’ entire company

Verizon announced massive layoffs affecting more than 13,000 employees on Thursday as the telecommunications giant embarks on what its new CEO describes as an aggressive company-wide transformation to address mounting competitive pressures.

The job cuts, which represent approximately 20% of Verizon’s management workforce, come as the company grapples with intensifying competition in both wireless and home internet markets from rivals like AT&T and T-Mobile.

In a staff memo obtained by The Associated Press, Verizon CEO Dan Schulman, who assumed the leadership role just last month, emphasized that the company’s current cost structure is hampering its ability to invest in customer experiences.

“We must reorient our entire company around delivering for and delighting our customers,” Schulman wrote. He noted that simplifying operations was necessary “to address the complexity and friction that slow us down and frustrate our customers.”

The layoffs primarily affect non-unionized management positions. A company spokesperson confirmed that Verizon employed nearly 100,000 full-time workers at the end of last year, according to securities filings.

This restructuring comes at a pivotal moment for the telecommunications giant. During Verizon’s most recent earnings call, Schulman characterized the company’s trajectory as being at a “critical inflection point” and promised an aggressive transformation rather than incremental changes.

The company’s third-quarter 2025 financial results showed mixed performance, with earnings of $4.95 billion on $33.82 billion in revenue. While Verizon reported continued growth in prepaid wireless services, it experienced a net loss of 7,000 postpaid connections, a metric closely watched by industry analysts as an indicator of financial stability.

According to The Wall Street Journal, which first reported on the impending layoffs last week, this round of job cuts represents the largest in Verizon’s corporate history. Beyond reducing its direct workforce, Schulman indicated that the New York-based company would also “significantly reduce” its reliance on outsourced labor and other external services.

The telecommunications sector has undergone significant shifts in recent years as traditional revenue streams from voice and text services have declined, forcing carriers to compete more aggressively on data packages, streaming partnerships, and home internet solutions. Verizon’s restructuring reflects these broader industry challenges.

The layoffs at Verizon reflect a troubling trend across the American job market. Major companies including Amazon, UPS, and Nestlé have recently announced substantial workforce reductions. These cuts have been attributed to various factors including rising operational costs linked to new tariffs implemented under President Donald Trump’s administration, changing consumer spending patterns, corporate restructuring initiatives, and increased investment in artificial intelligence technologies.

Acknowledging the broader economic context, Schulman noted that “changes in technology and in the economy are impacting the workforce across all industries.” As part of the company’s response to the layoffs, Verizon has established a $20 million “Reskilling and Career Transition Fund” aimed at supporting departing employees as they navigate their professional futures.

Industry analysts suggest that Verizon’s restructuring represents an acknowledgment that the company needs to become more agile to effectively compete in an increasingly crowded telecommunications marketplace. The emphasis on improving customer experience comes as consumers have more options than ever for both wireless and home internet services.

Wall Street’s initial reaction to the announcement was muted, with Verizon shares falling just over 1% by Thursday’s market close. Investors appear to be taking a wait-and-see approach to determine whether this dramatic reduction in workforce will translate into improved financial performance and market positioning for the telecom giant.

As the telecommunications landscape continues to evolve rapidly, Verizon’s aggressive restructuring may signal similar moves by competitors seeking to streamline operations and redirect resources toward emerging technologies and enhanced customer services.