Verizon is cutting more than 13,000 jobs as it works to ‘reorient’ entire company

Verizon is cutting more than 13,000 jobs — roughly 20% of its non‑union management ranks — as new CEO Dan Schulman said the company must “reorient” and simplify operations to free investment for customer experience and reduce outsourced labor; the reductions began Thursday and the company established a $20 million Reskilling and Career Transition Fund for departing workers. The move, reported as the largest-ever layoffs at Verizon, comes as the carrier — which had nearly 100,000 full-time employees at year-end — posted Q3 2025 results of $4.95 billion in earnings on $33.82 billion revenue, showed prepaid subscriber growth but lost 7,000 postpaid connections, and faces intensifying competition from AT&T, T‑Mobile and others. Shares fell just over 1% on the news, and management frames the cuts as part of an “aggressive transformation” to improve competitiveness and customer outcomes.

Analysis

Verizon announced a workforce reduction of more than 13,000 employees, which the company says represents about 20% of its non‑union management ranks, as new CEO Dan Schulman — in place since last month — told staff the firm must "reorient" and simplify operations to free investment for customer experience. The cuts are described as the largest-ever at Verizon and will be accompanied by a significant reduction in outsourced and outside labor expenses and a $20 million Reskilling and Career Transition Fund for departing workers.

In its most recent quarter Verizon reported $4.95 billion in earnings on $33.82 billion of revenue, with continued prepaid subscriber growth offset by a net loss of 7,000 postpaid connections; management frames the restructuring as an "aggressive transformation" to reverse that trajectory amid intensified competition from AT&T and T‑Mobile. Schulman explicitly cited the current cost structure as limiting the company’s ability to invest, signalling a strategic shift from incremental changes to broader operational simplification.

Shares traded down just over 1% on the announcement, reflecting moderately negative market sentiment but limited immediate sell‑off. Key near‑term risks are execution and customer‑experience disruption during the transition, while potential benefits are lower operating costs and reallocated investment if management delivers on its stated objectives.

Key Decisions for Investors

• Reassess existing VZ exposure and avoid adding material new positions until management provides concrete timelines and quantified targets for cost savings and reinvestment
• Monitor upcoming reports for postpaid net additions, prepaid trends, and disclosed reductions in outsourced labor spend as primary readthroughs on whether cuts improve competitive positioning
• Consider tactical hedges or position trimming to protect against execution risk and service disruption in the near term given the scale of the workforce reduction and only modest initial share reaction
• If management delivers clear, measurable cost‑savings and reinvestment plans, reassess for accumulation on sustained evidence of improving customer metrics and stabilized postpaid trends