Verizon Communications Inc. announced on Thursday its largest-ever single layoff, slashing more than 13,000 jobs as part of a sweeping restructuring effort under new Chief Executive Dan Schulman. The cuts, affecting roughly 13% of the company’s workforce, come amid intensifying competition in the wireless and broadband markets, where rivals like T-Mobile US Inc. and AT&T Inc. have been gaining ground.

The move is designed to reduce costs and streamline operations, with Verizon aiming to save billions in the process. According to a report from CNBC, the layoffs are part of Schulman’s strategy to create a ‘faster and more focused’ company, as stated in an internal memo.

A New Era Under Schulman

Dan Schulman, who took over as CEO earlier this month, has wasted no time in implementing changes. Previously the head of PayPal Holdings Inc., Schulman brings a background in fintech and digital payments to Verizon’s telecom empire. In his memo to employees, obtained by Business Insider, he emphasized that the company is at a ‘critical inflection point’ and must adapt to ‘intensifying wireless competition.’

This isn’t Verizon’s first round of layoffs, but it’s by far the most significant. Earlier reports from Reuters had speculated cuts could reach 15,000 jobs, representing about 15% of the workforce. The confirmed figure of over 13,000 aligns closely with those estimates, signaling a aggressive pivot toward efficiency.

Competitive Pressures Mounting

Verizon faces stiff challenges from competitors eroding its market share. T-Mobile has surged ahead with aggressive pricing and 5G expansion, while cable giants like Comcast Corp. encroach on home internet services. A Forbes analysis highlights how these dynamics have forced Verizon to rethink its cost structure, especially after reporting a loss of 7,000 postpaid phone customers in Q3 2025.

The restructuring includes more than just job cuts; Verizon is also converting 180 to 200 company-owned stores to a franchise model, potentially shifting thousands more roles off its payroll. Posts on X (formerly Twitter) reflect employee sentiment, with users discussing the scale of the reductions and linking them to broader economic slowdowns, though these are not official statements.

Economic Context and Industry Ripples

Broadly, these layoffs fit into a wave of job reductions across tech and telecom sectors. ABC News notes that while such cuts can devastate affected workers, they may not signal a full recession, as experts weigh in on the resilience of the broader job market. Verizon’s actions echo similar moves by companies like United Parcel Service, which have also trimmed staff amid slowdowns.

Analysts from Al Jazeera point out that the cuts could occur as soon as next week, impacting non-union management heavily—over 20% in some areas. This focus on overhead reduction aims to ‘fundamentally restructure our expense,’ as per internal communications referenced in X posts and reports.

Historical Layoff Patterns at Verizon

Verizon has a history of workforce adjustments. In 2024, it laid off nearly 5,000 employees in a $2 billion cost-cutting initiative, as reported by TheLayoff.com and echoed in X posts from that period. Earlier, in February 2024, substantial reductions were announced, per discussions on platforms like X, where users shared employee insights.

The current round dwarfs those efforts, marking a shift from incremental changes to a wholesale overhaul. The Times of India reported initial rumors of 10,000 to 15,000 cuts, underscoring the escalation under Schulman.

Employee Impact and Support Measures

Affected employees will receive severance packages, health-care benefits, and outplacement services, according to Verizon’s announcement via Newsweek. However, the human toll is significant, with X posts from users like those discussing the ‘bloodbath’ highlighting anxiety in the workforce.

Industry insiders note that these layoffs target corporate layers to boost agility. A quote from Schulman in The Economic Times stresses the need for a ‘faster and more focused’ organization to navigate the ‘tightening US telecoms market.’

Strategic Shifts and Future Outlook

Beyond cuts, Verizon is pivoting from heavy 5G investments to operational efficiency, as detailed in a Broadband Breakfast report. This includes outsourcing and attrition, potentially reducing the workforce by up to 20,000 when including store conversions.

Experts from Capacity suggest this overhaul could sharpen Verizon’s edge against rivals, but it risks morale dips and talent loss. X sentiment, including posts from telecom analysts, indicates concerns over innovation stifling amid cost pressures.

Broader Implications for Telecom

The telecom sector watches closely, as Verizon’s moves could inspire similar restructurings elsewhere. World Socialist Web Site frames this as part of a larger trend tied to AI proliferation and economic slowdowns, with job cuts accelerating across industries.

In the long term, Schulman’s vision may position Verizon for growth in emerging areas like AI-driven services, but the immediate focus remains on survival in a competitive landscape. As one X post noted, this is Verizon ‘swinging the axe’ to adapt, reflecting the harsh realities of modern telecom economics.