- A significant portion of the cuts will hit non‑union management, while about 200 stores convert to franchises.
- The move comes amid slowing subscriber growth and rising pressure from rivals.
What happened: Verizon is cutting 15,000 jobs and converting some stores to franchises as part of a major restructuring
Verizon Communications is preparing to lay off about 15,000 employees, according to reports from people familiar with the matter — marking the largest reduction in the company’s history. Sources suggest these cuts could begin shortly. The job losses are part of a major restructuring led by the company’s new CEO, Dan Schulman, who took over in October 2025. The reductions are expected to disproportionately affect non‑unionised management, with more than 20% of that tier potentially impacted. In addition to job cuts, Verizon plans to convert around 180–200 corporate‑owned retail stores into franchise operations, removing the staff at those locations from its direct payroll. The move is intended to fundamentally reshape Verizon’s cost base and operations as it faces stagnating growth in key segments.
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Why it’s important
This restructuring underscores just how pressured Verizon is in an increasingly competitive telecom landscape. With postpaid subscriber growth stagnating — including a net loss of ~7,000 connections in a recent quarter — the company is clearly trying to recalibrate its business model. By slashing costs and reducing its direct retail footprint, Verizon may free up resources to invest in areas like 5G, edge computing or next‑generation services. However, hitting 15% of its workforce comes with risks: morale could drop, institutional knowledge may be lost, and customer support or operations might suffer. CEO Schulman has framed the layoff as part of a long-term push for efficiency, saying the company must become “simpler, leaner and scrappier.” As Verizon reshapes itself, how well it balances short-term savings with future innovation could determine whether this bold bet pays off.
