Verizon’s new CEO is planning to cut about 15,000 jobs in what will be the US telecom giant’s largest-ever layoffs. The decision is part of Verizon’s first major restructuring efforts under the new leadership.
The layoffs, affecting roughly 15% of Verizon’s workforce, are expected to begin as soon as next week. Non-union management ranks will be reduced by more than 20%, and about 180 corporate-owned retail stores will be converted into franchised operations, sources said.
Verizon CEO Dan Schulman, who joined the company in October from PayPal, is tackling rising competition. Rival telecom companies like AT&T and T-Mobile have intensified promotions, while cable operators like Comcast and Charter are bundling mobile plans with internet services, challenging Verizon’s subscriber growth.
In the third quarter, Verizon added just 44,000 monthly bill-paying wireless subscribers, trailing competitors. T-Mobile led with more than 1 million net subscriber additions. Schulman has emphasized that Verizon will focus on being “simpler, leaner, and scrappier” while avoiding price hikes, despite maintaining some of the highest rates in the sector.
Verizon has faced stagnating share growth over the past three years, rising only 8% compared with the S&P 500’s nearly 70% gain. The company previously reduced its US workforce by almost 20,000 over three years, including voluntary exit programs.
Analysts say the layoffs are part of a broader cost-cutting strategy to offset the high expenses of customer retention, including subsidies for expensive handsets. Verizon has also invested heavily in 5G spectrum and acquisitions, including a $52 billion midband spectrum purchase and a $20 billion deal for Frontier Communications.
Schulman stressed the need for cost transformation and restructuring of Verizon’s expense base to ensure long-term sustainability. The company aims to maintain strong customer focus while improving efficiency in a rapidly changing telecommunications market.
The massive layoffs and restructuring mark a significant turning point for Verizon as it navigates fierce competition and seeks to secure its market position.
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