Verizon to cut over 13,000 jobs in major restructuring

Verizon will cut more than 13,000 jobs as part of a major restructuring to reduce costs and simplify operations.

The US wireless carrier plans to convert 179 company-owned retail stores into franchises and close one store.

Verizon CEO Dan Schulman told employees the cuts will affect workers across the organization and include a significant reduction in outsourced labor.

The company said most of the layoffs will impact its US workforce and are not related to its use of AI.

Verizon will set up a US$20 million fund to help laid-off employees with job searches and skills training.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Verizon expects a severance charge of $1.6 billion to $1.8 billion in Q4 2025 1. It has not shared expected yearly savings from 13,000 cuts, which investors need to gauge if margins will cover the upfront hit.
Over 80% of affected staff could depart by next month 1, which signals quick relief on payroll. Without the all-in cost per employee or the effect on free cash flow (cash left after operating and capital expenses), dividend support remains hard to model.
The company plans to cut spending on contractors and third-party services 2, yet it offered no specific goals. Investors also lack clarity on whether savings will fund network upgrades or flow back to shareholders.

Verizon will convert 179 company-run stores into franchises 1, which shifts buying power to large authorized retailers like Victra. Victra runs nearly 1,500 Verizon stores across 49 states 3. It is a prime lead for point-of-sale systems. Vendors can also pitch embedded SIM (eSIM) onboarding. Fraud tools and trade-in platforms fit too.
Vendors should map the next tier of authorized retailers beyond Victra to build focused prospect lists, since these operators will now pick tech that Verizon once bought centrally.
Workforce management software for scheduling and labor planning is timely 3. Payment processing tools also fit. Same-day device setup can help franchisees run tighter stores as they face AT&T and T-Mobile.