Verizon cutting more than 13,000 jobs as it restructures

[WASHINGTON] US wireless carrier Verizon on Thursday (Nov 20) said that it will cut more than 13,000 jobs in its largest single layoff as it works to shrink costs and restructure operations.

Verizon also said that it plans to convert 179 corporate-owned retail stores into franchised operations and close one store.

The company said in a filing that it expects to record a severance charge of US$1.6 billion to US$1.8 billion in the fourth quarter and that more than 80 per cent of the affected employees will leave next month. Verizon shares fell 1 per cent on Thursday.

Verizon’s new CEO, Dan Schulman, said in a note to employees the company would reduce its workforce by more than 13,000 employees across the organisation, and significantly reduce outsourced and other outside labour expenses.

“Our current cost structure limits our ability to invest significantly in our customer value proposition,” Schulman wrote in a note to employees seen by Reuters. “We must simplify our operations to address the complexity and friction that slow us down and frustrate our customers.”

A company spokesperson confirmed the job cuts, saying “this is an opportunity for Verizon to reset, restructure and realign our priorities on ways that will help us regain our leadership as a communications provider”.

Reuters and other outlets reported last week that Verizon was planning to cut around 15,000 jobs. Most of the cuts are to its US workforce.

Schulman said that Verizon was establishing a US$20 million career transition fund for laid-off employees to focus on the “opportunities and necessary skill sets as we enter the age of AI (artificial intelligence)”.

Verizon said that the job cuts were not the result of the company’s use of AI.

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The wireless carrier faces mounting market pressure amid concerns over a shrinking pool of new customers as older rivals offer cheaper plans and cable operators jump into the fray. Schulman, a Verizon board member since 2018, was named CEO in October, arriving from the helm at PayPal and facing promotions by rivals AT&T and T-Mobile around the launch of new iPhone models, with aggressive discounts and trade-in deals.

Verizon added just 44,000 monthly bill-paying wireless subscribers in the third quarter, lagging AT&T. T-Mobile led with more than one million net subscriber additions.

Verizon had about 100,000 US employees at the end of 2024, including about 70,000 non-union employees. The telecommunications company cut almost 20,000 jobs over the prior three years.

Verizon spent US$52 billion to acquire key wireless midband spectrum in a 2021 auction to boost its 5G network. The company also struck a US$20 billion deal to acquire Frontier Communications last year and spent US$6 billion to acquire prepaid mobile phone provider TracFone Wireless. REUTERS