Verizon is set to slash over 13,000 jobs—a hefty 13% reduction of its workforce. New CEO Dan Schulman, barely settled into the corner office, is wielding the axe with a clear mandate: reorient the company around customer experience and, crucially, cut costs. Schulman’s memo speaks of addressing “complexity and friction” that slow Verizon down and frustrate customers. It’s a classic turnaround narrative, but the scale of these layoffs begs the question: is this a strategic recalibration, or a sign of deeper trouble?

The Numbers Game: Subscribers vs. Expenses

Let's drill down into the numbers. Verizon lost 7,000 postpaid customers last quarter, while rivals T-Mobile and AT&T were busy racking up gains. That's a net loss, but it's crucial to put it in perspective. Verizon still boasts a massive subscriber base. Those 7,000 lost customers, while concerning, are a drop in the bucket compared to their overall numbers (around 100,000 employees as of September). The real issue, as Schulman points out, is the cost structure.

Verizon is framing this as an investment in the "customer value proposition," which sounds good, but let’s be real: $20 million has been earmarked for a "skill development, digital training, and job placement" fund for those laid off. That's about $1,500 per laid-off employee. (I'm being generous and assuming all 13,000 benefit, which is unlikely.) It's a PR-friendly gesture, but hardly a game-changer for the individuals affected.

The company is also franchising around 200 stores. This shifts the payroll burden onto franchisees, instantly improving Verizon's balance sheet. It's a clever move, but it also means a potential decline in service quality as these franchised stores operate with different incentives and standards. Will Verizon's brand suffer in the long run? Details on the specific financial arrangements with franchisees remain scarce, but I suspect Verizon is offloading a significant amount of risk.

Echoes in the Tech Graveyard: Is Verizon Different?

Verizon isn't alone in this layoff frenzy. Microsoft, Amazon, and Intel have all announced significant workforce reductions. The reasons cited are the usual suspects: economic headwinds, restructuring, and the ever-popular "expense management." Amazon even blamed "employee culture," which is a fascinating, if vague, scapegoat.

However, Verizon’s situation feels different. Microsoft and Amazon are still fundamentally growth companies, albeit with bloated payrolls after years of unchecked expansion. Verizon, on the other hand, is facing a more mature market. The wireless industry is saturated, and competition is fierce. AT&T and T-Mobile are nipping at their heels, and new entrants could disrupt the landscape further. Verizon Confirms Mass Layoffs, Will Eliminate 13,000+ Jobs.

The company claims these layoffs will affect nearly 20% of its management workforce. This suggests a streamlining of decision-making processes and a flattening of the corporate hierarchy. On paper, that could lead to greater agility and faster response times. But it also means a lot of experienced managers are hitting the streets. Will the remaining workforce be able to handle the increased workload and responsibility? And more importantly, will this management shakeup truly translate into tangible improvements in customer experience? I've looked at hundreds of these corporate restructurings, and the promised benefits rarely materialize as neatly as the press releases suggest.

The Real Cost of Cutting Corners

Ultimately, Verizon's layoffs are a gamble. They might succeed in cutting costs and boosting short-term profits. Verizon posted earnings of $4.95 billion and $33.82 billion in revenue for the third quarter of 2025. But the long-term consequences could be severe. A demoralized workforce, a decline in service quality, and a weakened brand are all potential pitfalls. Schulman is betting that a leaner, meaner Verizon can outcompete its rivals. But he's also betting against the very people who built the company in the first place.

The Data Doesn't Lie: It's a High-Stakes Roll of the Dice