Verizon Plans Major Job Reductions Amidst Restructuring Efforts

Post by : Bianca Suleiman

Marking a pivotal moment in the US telecom landscape, Verizon is poised to eliminate approximately 15,000 positions—almost 15% of its American workforce—beginning next week. This marks the company's most significant layoff round to date, occurring mere weeks after Dan Schulman took the reins as CEO from PayPal.

The impending restructuring is anticipated to predominantly impact Verizon's non-union management cohort, with over 20% likely feeling the effects. Additionally, the telecom giant aims to transition around 180 corporate-run retail locations to franchise operations, emphasizing its commitment to streamlining processes and decreasing expenses.

This strategic maneuver arrives in the wake of heightened competitive pressures within the US wireless landscape, where subscriber growth has stagnated and customers are increasingly cautious about investing in premium plans. Historically, Verizon has been categorized as a premium-priced operator but is now encountering intensified rivalry from AT&T and T-Mobile as consumers seek more cost-effective options.

Verizon has made substantial investments in recent years amidst escalating operational hurdles. The company allocated $52 billion in 2021 for vital C-band spectrum and completed a $20 billion acquisition of Frontier Communications. Furthermore, it incorporated TracFone Wireless for $6 billion to bolster its prepaid mobile offerings. While strategic, these investments strained the company's finances at a time of diminishing market growth.

As part of its response, Verizon has gradually pared down its workforce. The company reported roughly 100,000 employees in the US at the end of 2024, a decline from about 120,000 three years earlier. Last year alone, Verizon let go of 4,800 employees through voluntary severance options, incurring almost $2 billion in associated costs.

With Schulman at the helm, Verizon is gearing up for what sources describe as a “leaner” and more targeted strategy moving forward. The forthcoming layoffs are anticipated to play a crucial role in this transition, with aims to reshape operations while stabilizing subscriber figures and reclaiming competitive standing in a maturing telecom market.

In the coming weeks, the pace and depth of this transformation will become evident for one of the largest telecommunications entities in the United States.