In November 2025, Verizon Communications Inc. announced the largest mass layoff in its history: cutting more than 13,000 jobs as part of a corporate restructuring under new CEO Dan Schulman.
The reductions affect about 20 % of the company’s management workforce, with notifications beginning November 20. Schulman said the cuts aim to streamline operations and reposition Verizon to better compete with rivals like AT&T and T-Mobile.
Leadership Shift: Hans Vestberg to Dan Schulman
In early October 2025, Verizon named Dan Schulman, former CEO of PayPal, as its new chief executive officer, replacing Hans Vestberg.Schulman had served on Verizon’s board and was tapped to guide the company through competitive challenges and slowing postpaid growth. Vestberg, CEO since 2018, oversaw major investments like the Frontier acquisition but stepped aside as the board sought renewed strategic direction.
Why the Cuts? Competitive and Structural Pressures
Schulman has stated that Verizon’s current cost structure limits investment in customer value, prompting a need to “simplify operations” and become leaner.
The company is also converting roughly 179 corporate-owned retail stores to franchised operations, reducing payroll obligations. Verizon’s leadership argues these moves are necessary to sharpen competitiveness amid fierce pricing and service offers from rivals.
Subscriber Trends: Postpaid Challenges
In Q3 2025, Verizon reported a loss of ~7,000 postpaid phone customers—a key revenue-generating segment—while overall churn for retail postpaid reached 0.91 %.
The results highlighted ongoing difficulties in retaining contract subscribers, even as wireless service revenue modestly increased.
Market Share Decline
Verizon’s management acknowledged the company has lost 500–700 basis points of market share over the past five years. Leadership attributes this gap to a mix of pricing strategy, competitive intensity, and execution issues.
The losses in key metrics like net subscriber additions signal broader pressure from competitors such as
Customer Satisfaction and Churn Realities
Verizon’s churn and satisfaction trends reflect strategic challenges. Competitor T-Mobile and others have attracted new customers with aggressive promotions.
Verizon’s churn rising toward 0.91 % suggests some subscribers are switching carriers amid pricing and experience concerns, underscoring the importance of the company’s renewed customer-centric focus.
Impact on Verizon Employees
Affected employees have reported difficulty during the transition, with layoffs touching many departments.
Online forums reflect emotional strain and concerns about job prospects. To support departing staff, Verizon has established a $20 million Reskilling and Career Transition Fund aimed at assisting career shifts and upskilling.
Regulatory and Acquisition Context
Verizon’s broad strategic shifts coincide with its pending $20 billion Frontier Communications acquisition, expected to close in early 2026.
Regulators previously approved this deal, which expands Verizon’s broadband footprint. The restructuring aims to free resources to leverage synergies from the acquisition while improving long-term competitiveness.
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Broader U.S. Layoff Trends
Verizon’s layoffs occur within a larger U.S. labor market shift. Across industries, employers have announced significant job cuts in 2025.
Though not the nation’s largest contributor, Verizon’s reduction is a high-profile example of major restructuring as companies manage costs amid economic headwinds.
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Retail Presence and Store Strategies
The workforce changes include planned conversions of many corporate-owned retail stores to franchise operations, which affect staffing without mass closures.
This strategic tilt is meant to lower operating costs and heighten local partner engagement.
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Economic Ripple Effects
Reductions at major employers like Verizon often ripple through local economies, potentially reducing discretionary spending in communities and supply chains.
Ancillary sectors such as local retail and services can feel downstream pressure when a large employer restructures.
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Tech and Telecom Sector Layoffs
The telecom sector in 2025 saw one of its highest monthly layoff totals in years.
Industry job cuts accelerated, partially reflecting broader trends across tech, media, and communications firms adapting to AI, automation, and cost restructuring.
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Global Carrier Shifts
Verizon’s service evolution also plays out against shifting global telecom dynamics.
Price sensitivity and value perception drive subscriber decisions worldwide, pushing carriers to innovate with bundling, broadband convergence, and digital experiences to maintain relevance.
Personal and Financial Impacts
For those laid off, transitions can affect healthcare access, income stability, and career momentum.
Verizon’s transition fund aims to alleviate some impact, but many workers still face competitive job markets and uncertain prospects.
Internal Industry Debates
Telecom executives and analysts debate labor cuts, automation, pricing strategies, and customer satisfaction.
Some see layoffs as overdue restructuring; others caution about weakened service and strained workforce morale. Such discourse highlights emerging fault lines in telecom business models.
Competitor Landscape Gains
T-Mobile and AT&T continue to attract net new subscribers in multiple quarters, gaining ground where Verizon has shown weakness.
This competitive performance influences Verizon’s strategic urgency to rebuild subscriber trust and offer clearer value propositions.
Verizon’s Financial Position
Verizon ended Q3 2025 with steady revenue growth and a strong dividend yield—factors that reassure investors even amid restructuring.
Cost savings from layoffs and operational efficiencies are expected to support profitability as competitive pressures persist.
Consumer Advice
Consumers comparing wireless plans should consider churn metrics, pricing tiers, and network service quality across carriers.
Staying informed on FCC updates, promotional offers, and contract terms can lead to better value as competition evolves.
Outlook Into 2026
Schulman emphasizes customer experience and leaner operations as Verizon moves into 2026. Success hinges on retention gains, broadband integration, and smarter service delivery.
The company has signaled that further organizational shifts may be needed to stabilize growth.
Industry Reshaping
Verizon’s restructuring highlights transformational pressures in telecom—from competitive churn to cost optimization and customer value focus.
The company’s efforts reflect a broader industry shift toward smarter operations while striving to reverse market share decline.
Sources:
- Reuters, “Verizon is cutting more than 13,000 jobs as it works to ‘reorient’ entire company” (September 2024, updated November 2025): Coverage of workforce reductions and CEO memo.
- ACSI 2025 (American Customer Satisfaction Index): Telecom satisfaction scores (Verizon 583, industry 593, T-Mobile 636).
- FCC reports (Federal Communications Commission): Network and churn oversight data.
- Challenger Gray reports, November 2025 (Challenger, Gray & Christmas): U.S. layoff trends (57,000+ cuts).
- Frontier deal announcements (Verizon filings, 2024): $20B acquisition details.