Verizon is planning to cut about 15,000 jobs in what would become the largest round of layoffs in the company’s history, according to a person familiar with the matter. The reductions, expected as early as next week, mark one of the first major restructuring steps under CEO Dan Schulman as the company confronts accelerating competition and a tightening wireless market.
The job cuts represent roughly 15% of Verizon’s U.S. workforce and follow several years of cost-cutting efforts. The company is also preparing to shift about 180 of its corporate-owned retail stores into franchise locations, a move aimed at slimming operations and reducing long-term expenses. A Verizon spokesperson declined to comment on the reported plans.
Competitive pressures intensify in the wireless market
Verizon faces rising pressure from older rivals offering cheaper plans and cable operators expanding into wireless with bundled promotions. AT&T and T-Mobile have been particularly aggressive around new device launches, using discounts and trade-in incentives to keep customers from switching carriers.
While Verizon added 44,000 monthly bill-paying wireless subscribers in the third quarter, it lagged far behind both competitors. T-Mobile posted more than 1 million net additions during the same period, highlighting how difficult subscriber growth has become for traditional carriers.
Schulman, who joined Verizon from PayPal in October, has said the company must reshape its cost structure to remain competitive. “We will be a simpler, leaner and scrappier business,” he said last month, emphasizing the need for structural change rather than relying on price increases to fuel growth.
Strategic shift and financial implications
The layoffs come after several years of workforce reductions. Verizon ended 2024 with roughly 100,000 U.S. employees, down almost 20,000 over three years. A voluntary reduction program last year eliminated 4,800 roles and resulted in a nearly $2 billion charge. In 2018, another voluntary program prompted the exit of about 10,400 employees.
Analysts say the current cuts appear tied to the company’s need to redirect spending toward customer retention, particularly through subsidized devices. Craig Moffett of MoffettNathanson said the key question is whether the savings from layoffs will be enough to offset the higher costs associated with handset subsidies. “What we don’t know is whether these cost reductions will actually help to offset the higher planned costs of retention,” he said.
Verizon’s share price rose about 1.5% on the news, though the stock has gained only 8% over the past three years compared with the S&P 500’s nearly 70% rise. The company’s long-term spending has also raised questions among analysts. Verizon paid $52 billion in 2021 for midband spectrum to support its 5G network and later completed deals including a $20 billion acquisition of Frontier Communications and a $6 billion purchase of prepaid provider TracFone Wireless.
A major restructuring push under Schulman
Schulman, who served on Verizon’s board for seven years before becoming CEO, has emphasized a customer-focused strategy built on affordability rather than repeated price hikes. He has argued that Verizon’s current model relies too heavily on raising prices without generating corresponding subscriber growth, creating a gap that the company must address.
The incoming CEO’s approach reflects broader shifts in the wireless sector, where cable operators such as Comcast and Charter continue to disrupt the market through bundled mobile and internet services. These competitive pressures have forced major carriers to rethink their pricing, retention tactics and long-term cost structures.
Verizon’s planned store conversions, management trims and workforce reductions are intended to reduce expenses in a business Schulman describes as in need of “fundamental restructuring.” As the wireless market becomes more crowded and margins shrink, the company is betting that deep cost cuts will provide the financial room needed to stabilize subscriber trends.
