Verizon to Slash 15,000 Jobs – Its Biggest Layoff Ever

• Verizon Communications Inc. (VZ) shares climbed 1.12% to $41.26 amid reports of its largest-ever layoffs, cutting about 15,000 jobs – 15% of its 100,000 U.S. workforce – primarily in non-union management and converting 180 retail stores to franchises.
• New CEO Dan Schulman, appointed in early October after seven years on the board, is driving a “cost transformation” for a leaner, customer-centric model, rejecting reliance on price increases for growth.
• In a maturing U.S. wireless market with slowing subscriber additions, Verizon’s $172 billion market cap faces intensifying pressure from rivals AT&T Inc. (T) and T-Mobile US Inc. (TMUS), prompting these efficiency measures.

Verizon Communications Inc. (VZ) shares rose 1.12% to $41.26 during Thursday’s trading session, reflecting investor reactions to reports of sweeping restructuring measures at the telecommunications giant. The company, with a market capitalization of $172 billion, is preparing to eliminate approximately 15,000 positions, representing about 15% of its workforce, in what marks the largest layoff event in its history. These reductions, targeting more than 20% of non-union management ranks, are expected to commence in the coming week, according to a source familiar with the plans.

This initiative forms a cornerstone of Verizon’s broader cost transformation strategy, emphasizing a leaner operational structure amid a maturing U.S. wireless market. The carrier, which employed roughly 100,000 U.S. workers at the end of 2024, also intends to convert around 180 corporate-owned retail stores to franchised models, further streamlining its footprint. Such moves align with Verizon’s historical emphasis on efficiency, building on prior efforts like the 2019 spinoff of its media assets and ongoing investments in 5G infrastructure, which have aimed to balance capital expenditures with profitability in a capital-intensive sector.

Under new Chief Executive Officer Dan Schulman, appointed in early October after serving seven years on the board, Verizon is pivoting toward sustainable growth without relying on price hikes. Schulman, previously at the helm of PayPal Holdings Inc. (PYPL), has articulated a vision for a “simpler, leaner, and scrappier” organization, critiquing past financial gains that leaned too heavily on premium plan increases amid stagnant subscriber additions. He has stressed a customer-centric approach, prioritizing service innovation over revenue extraction, especially as consumer caution tempers demand for high-tier offerings.

These changes occur against intensifying rivalry from AT&T Inc. (T) and T-Mobile US Inc. (TMUS), where aggressive spectrum acquisitions and bundling strategies have eroded Verizon’s market share. The U.S. wireless sector, now saturated with over 90% smartphone penetration, demands differentiation through network reliability and enterprise solutions – areas where Verizon’s fixed wireless access and enterprise 5G deployments have provided a competitive edge, though at the expense of escalating operational costs. As Schulman steers the company through this phase, the layoffs and store transitions signal a deliberate recalibration to fortify margins and redirect resources toward long-term resilience in a landscape defined by consolidation and technological evolution. Verizon has not yet commented on the developments, which were first detailed by The Wall Street Journal.

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