Verizon wants to be an industry leader
Verizon‘s grip as an industry leader is slipping. Schulman prepared employees for what was ahead by telling them that the carrier needed to evolve to keep its customers happy and expand its market leadership in an all-employee meeting. In the email sent on Thursday, the CEO said that Verizon‘s existing cost structure was preventing it from investing in offering better customer value.Under Schulman, the company has embraced a customer-first, cost-sensitive culture. This new approach requires Verizon to be faster, more proactive, and better able to address the complexity and friction that is slowing it down.
Our current cost structure limits our ability to invest significantly in our customer value proposition. We must reorient our entire company around delivering for and delighting our customers
Dan Schulman, Verizon’s CEO, November 2025
This necessitates changes such as the layoffs that will affect the entire organization. The company will also cut down on outsourced and other outside labour expenses.
As a customer-first culture, we have to align our teams and resources to create new value for customers and build a faster, stronger and more proactive Verizon. To do that, we must simplify our operations to address the complexity and friction that slow us down and frustrate our customers.
Dan Schulman, Verizon’s CEO, November 2025
The company will also transform 179 stores into franchised operations and shutter a retail location.
This is an opportunity for Verizon to reset, restructure and realign our priorities in ways that will help us regain our leadership as a communications provider.
Verizon spokesperson, November 2025
The biggest downsizing at Verizon
Verizon has never laid off as many employees before, which speaks to the turmoil it’s going through. The company employed 100,000 people as of February, and the job cuts will reduce its expenses for nonunion employees by around 20 per cent, according to The Wall Street Journal. Schulman took the reins from Hans Vestberg in October after three straight quarters of customer losses. Although Verizon remains the largest US carrier by subscriber counts, it’s on pace to lose the crown to T-Mobile.
The company relied on price hikes to prop up revenue, a strategy that ultimately backfired and led to a declining customer base. Schulman is determined to reverse that trend and get the company back on track.
Captain Obvious?
Reducing headcount and scaling back retail presence are the most straightforward ways to cut expenses. While these measures may boost efficiency and improve margins, the sheer scale of Verizon‘s decision raises the question of whether it has gone too far.
Additionally, today’s email doesn’t say what Schulman has in mind to help Verizon reverse course, but the company’s latest hire may give us an idea. Alfonso Villanueva joined Verizon as Executive Vice President, Chief Transformation Officer on November 20.
He will oversee the development of the company’s digital infrastructure to allow AI and automation-driven transformation of the company.
While the strategy sounds good in theory and seems to have been plucked from T-Mobile‘s playbook, Verizon may be losing sight of what really matters. For instance, the company claims it wants to create value for customers without addressing the high prices that caused this situation in the first place, leaving its promos and perks feeling like gimmicks. Similarly, franchised stores and AI tools may degrade the customer service experience.
Verizon is in a tough spot, and for now, it has taken the most obvious route: letting employees go, washing its hands of stores, and using AI. While these measures might prove to be good in the short term, Schulman will need to get a little more creative if he wants Verizon to have a shot at retaining its position.
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