Verizon layoffs: Company to cut thousands of jobs

Verizon told employees it will cut more than 13,000 jobs — the largest layoffs in the company’s history and roughly 20% of its management ranks — in a restructuring ordered by new CEO Dan Schulman that he says is needed to simplify operations, reduce a cost structure that limits investment and refocus the company on customer experience; the reductions began Friday and could take effect as soon as next week. The move comes amid intensifying competition from AT&T, T‑Mobile and others and follows speculation of cuts of up to 15,000; Verizon reported Q3 2025 net income of $4.95 billion on $33.82 billion of revenue, with prepaid subscriber growth but a net loss of 7,000 postpaid connections.

Analysis

Verizon announced a restructuring under new CEO Dan Schulman that will cut more than 13,000 jobs—the largest layoffs in the company’s history—affecting roughly 20% of its management ranks and can begin as soon as next week. Schulman framed the move as necessary to simplify operations and reduce a cost structure he says limits investment in customer experience.

The company had nearly 100,000 full-time employees at year-end and reported Q3 2025 net income of $4.95 billion on $33.82 billion of revenue; results showed prepaid subscriber growth but a net loss of 7,000 postpaid connections. The cuts come amid intensified competition from AT&T and T-Mobile, and management’s stated goal is to free resources for customer-focused investment while addressing operational complexity.

Market reaction is moderately negative given the size and timing of the layoffs; near-term headwinds include restructuring charges, execution and morale risks, and potential customer-service disruption that could exacerbate postpaid losses. Key near-term indicators to watch are any guidance on one-time charges and annualized cost savings, subsequent postpaid net-add trends, and how freed-up spending is allocated toward customer experience versus capex, as outcomes will determine whether margin improvement outweighs revenue risk.

Key Decisions for Investors

• Reassess exposure to VZ and avoid initiating large new positions until Verizon provides details on restructuring charges, expected annualized savings and a clear timeline
• Monitor upcoming quarterly guidance and metrics—postpaid net additions, churn trends, and any reallocation of spend toward customer experience—as primary signals for the success of the plan
• Consider tactical hedges (protective puts or collars) to mitigate near-term downside from execution or reputational risk while management executes the restructuring
• Compare relative valuations and subscriber trends at AT&T and T-Mobile for potential reallocation if the market disproportionately penalizes Verizon despite credible cost savings