Verizon is on the brink of implementing significant workforce reductions, planning to eliminate at least 15,000 jobs and transition 180 of its stores into franchise operations. This move represents the company’s largest downsizing to date, as reported by multiple outlets including Reuters, the Wall Street Journal, and Bloomberg. According to anonymous sources, the anticipated layoffs could begin as early as next week and may ultimately affect around 15% of Verizon’s workforce.
The telecommunications giant, facing heightened competitive pressures, is grappling with a slowdown in customer acquisition. Competitors are luring potential subscribers with more affordable plans, while traditional cable companies like Comcast and Charter are increasingly encroaching on Verizon’s market space.
The restructuring strategy includes converting company-operated stores to franchises, which would result in the removal of employees from Verizon’s payroll. Bloomberg estimates that this initiative could lead to job cuts totaling up to 20,000 across the company. The proposed layoffs will notably impact non-union management roles, reducing these positions by over 20%.
This substantial workforce reduction marks one of the initial strategies implemented by CEO Dan Schulman, emphasizing the need for “cost transformation” and a fundamental restructuring of the company’s financial base. Schulman previously noted the necessity for Verizon to streamline its operations, describing the vision for the company as “a simpler, leaner, and scrappier business.”
At the end of 2023, Verizon’s workforce was about 100,000 employees, following previous reductions that saw nearly 20,000 jobs eliminated over the preceding three years. Efforts to verify the specifics of the layoffs were unsuccessful as of the latest reports.
The impending cuts at Verizon come amid a broader wave of layoffs within the economy. In recent weeks, Amazon revealed it had cut 14,000 corporate positions, while Target announced plans to reduce its corporate workforce by approximately 1,800 jobs. October alone saw employers across various sectors eliminate more than 150,000 jobs, marking the largest monthly wave of layoffs in over two decades, according to a report from Challenger, Gray & Christmas.
