NEW YORK CITY, New York: Verizon embarked on one of the most significant restructurings in its history when it announced plans on November 20 to eliminate more than 13,000 jobs and overhaul its retail footprint as the U.S. wireless carrier attempts to cut costs and regain competitive momentum.

The move marked Verizon's largest single round of layoffs and comes as new CEO Dan Schulman pushed to streamline operations and shift resources toward areas he says will strengthen the company's value proposition. The reductions represent roughly 20 percent of wage costs for non-union employees.

In a note to staff, Schulman said Verizon would trim its workforce by more than 13,000 employees and sharply reduce outsourced labor.

"Our current cost structure limits our ability to invest significantly in our customer value proposition," he wrote. "We must simplify our operations to address the complexity and friction that slow us down and frustrate our customers."

Verizon said in a regulatory filing that it expects to record US$1.6 billion to $1.8 billion in severance charges in the fourth quarter, and more than 80 percent of affected employees will leave next month. Shares fell one percent on November 20 following the announcement.

As part of the restructuring, Verizon will convert 179 company-owned retail stores into franchised locations and close one store. A spokesperson said the overhaul represents "an opportunity for Verizon to reset, restructure, and realign our priorities on ways that will help us regain our leadership as a communications provider."

Although media reports last week suggested roughly 15,000 job cuts were possible, Verizon confirmed the number will be slightly lower, with most reductions affecting U.S. workers.

Schulman also announced a $20 million career transition fund to support laid-off employees, helping them pursue training and "necessary skill sets as we enter the age of AI." The company stressed that its AI initiatives did not cause the job cuts.

Verizon faces growing pressure from rivals as the wireless market reaches saturation. AT&T and T-Mobile have launched aggressive promotions tied to new iPhone releases, while cable operators are luring customers with lower-priced mobile plans.

The company added just 44,000 postpaid phone subscribers in the third quarter, trailing AT&T and far behind T-Mobile, which added more than one million net postpaid phone subscribers.

Schulman, a Verizon board member since 2018 and former PayPal CEO, took over leadership in October with a mandate to sharpen Verizon's competitiveness after years of slow growth.

The company has made a series of significant investments in recent years, including $52 billion for midband wireless spectrum in 2021 to bolster its 5G rollout, a $20 billion acquisition of Frontier Communications assets, and $6 billion for TracFone Wireless. Verizon had about 100,000 U.S. employees at the end of 2024, including around 70,000 non-union workers, and had already cut nearly 20,000 jobs over the previous three years.