US wireless carrier Verizon has announced a significant workforce reduction, planning to lay off more than 13,000 employees in what stands as the company’s largest single job-cut initiative to date. The move forms part of a broader strategy to cut operational costs and restructure core business functions. The announcement was made by Chief Executive Officer Dan Schulman in an email to employees, later obtained by The Wall Street Journal. Schulman emphasized the necessity of the decision, explaining that the company’s current cost structure limits its ability to make substantial investments in its customer value proposition. He further stressed that Verizon must streamline operations to remove internal complexity and friction points that hinder efficiency and ultimately frustrate customers, reaffirming a renewed focus on company-wide customer satisfaction.

In addition to layoffs, Verizon plans to significantly reduce its dependency on outsourced and external labor. These cuts are expected to reduce the company’s non-union workforce by as much as 20%, marking a central step in Schulman’s comprehensive turnaround plan for the telecommunications giant. The restructuring will also impact Verizon’s retail operations, as the company intends to convert 179 corporate-owned stores into franchised locations, alongside the closure of one store. Despite these shifts, a Verizon spokesperson informed Bloomberg that the company will still maintain about 1,300 corporate-owned stores while overseeing more than 6,000 franchised outlets.

Reports from Reuters, The Wall Street Journal, and other media outlets indicated that Verizon had initially considered an even larger reduction, targeting up to 15,000 job cuts. Leadership ultimately opted for a smaller figure, based on internal deliberations held last week, according to sources cited by the Wall Street Journal. Most affected employees are based in the United States and were scheduled to receive notification on Thursday. Those working in international offices may receive updates in the coming weeks. As of February, securities filings showed Verizon employed approximately 100,000 workers in the US, the majority of whom were non-unionized.

Addressing speculation about artificial intelligence, Verizon CEO Dan Schulman clarified that the layoffs were not directly caused by the company’s AI adoption efforts. However, he announced the creation of a $20 million career transition fund specifically for affected employees. This fund is designed to help them focus on developing the skills, certifications, and professional pathways needed to transition into new roles both within and outside the technology sector, offering critical support during this period of change.