Verizon Communications has begun notifying employees about its largest-ever round of layoffs, marking a major turning point for the telecom giant as it seeks to reset its cost structure and revive growth. The process started Thursday, following an all-staff email from newly appointed CEO Dan Schulman, according to details reviewed by The Wall Street Journal.
The reductions are part of a sweeping strategy to streamline operations, reduce spending, and respond more aggressively to growing competitive pressure in the telecom market. The move underscores how rapidly Verizon’s leadership is shifting priorities under Schulman, who stepped into the role just weeks ago.
More Than 13,000 Jobs Set to Be Cut Globally
Verizon plans to eliminate over 13,000 roles across its global workforce—slightly fewer than the 15,000 positions previously expected, but still a significant restructuring. U.S. employees affected by the cuts began receiving notifications Thursday, while international teams will be informed in phases over the coming weeks due to varying local labor regulations.
The company had about 100,000 employees as of February. With most of its workforce not unionized, Verizon has more flexibility than many large corporations when implementing rapid organizational changes. A person familiar with the plan said the layoffs will lower labor costs for nonunion employees by nearly 20%, marking a major step in Verizon’s broader push to cut expenses.
Verizon will also sharply reduce spending on outsourcing and external contractors as part of this overhaul, aiming to simplify workflows and bring more efficiency to core business operations.
Competitive Pressures and Customer Losses Drive Urgency
The restructuring comes at a critical moment for Verizon, which continues to face mounting competition from AT&T and T-Mobile. Both rivals have been steadily adding wireless subscribers, while Verizon has struggled to keep pace.
In the latest quarter, Verizon posted a net loss of 7,000 consumer postpaid phone subscribers—an important metric for telecom investors. Analysts had expected the company to gain around 19,000 such customers, making the shortfall a clear sign of competitive erosion.
Verizon, despite being the largest U.S. telecom provider by total subscribers, has been pressured by more aggressive pricing, expanded 5G offerings from competitors, and shifting consumer preferences. Schulman, in his internal message to employees, noted that Verizon’s current cost structure restricts its ability to invest meaningfully in areas that directly impact customer experience and long-term value.
He emphasized the need for a reset, signaling that restoring subscriber growth will depend on redeploying resources toward innovation, service improvements, and more agile decision-making.
Leadership Shift Brings New Strategic Direction
Schulman’s arrival marks a significant turning point. Previously the CEO of PayPal and, until recently, Verizon’s lead independent director, he was chosen by the board last month after dissatisfaction with former CEO Hans Vestberg’s “network-first” strategy. That approach prioritized infrastructure expansion but drew criticism for not adequately addressing consumer-facing challenges or broader strategic shifts in the industry.
Under Schulman, Verizon is expected to pivot toward a more balanced strategy—one that focuses both on network leadership and on strengthening customer relationships, product offerings, and digital capabilities.
His appointment signals the board’s readiness to rethink long-held priorities and push the company toward a more customer-centric and adaptive business model.
Reskilling Fund Introduced for Departing Employees
Despite the scale of the layoffs, Verizon has announced new support measures for affected workers. Schulman unveiled a $20 million reskilling and career-transition fund, designed to help departing employees adapt to a rapidly evolving job market—particularly one being reshaped by artificial intelligence and automation.
The fund will support retraining programs, professional development courses, certifications, and career counseling services. More details are expected as Verizon outlines additional aspects of its restructuring plan.
Expect More Organizational Changes in the Coming Weeks
The layoffs represent only the first phase of a broader corporate transformation. Schulman told employees that Verizon will provide further updates soon, including details on structural changes, revised reporting lines, and potential reorganizations within major business units.
Segments across the company—from consumer-facing services to network operations and corporate roles—may undergo changes as Verizon works to streamline its structure and redirect investments toward customer-focused initiatives.
