Verizon Communications is preparing for one of the largest layoffs in company history as part of its ongoing cost transformation and restructuring. According to reports, the upcoming layoffs may affect 15,000 employees of the US telecom giant. Newly appointed CEO, Dan Shulman, has also laid out an aggressive plan to increase the company’s revenues and gain market share after months of losses and declining customer numbers.

Verizon currently employs about 100,000 people, but following restructuring efforts, about 15 percent of its workforce could be affected. The changes follow three consecutive quarters of subscriber losses and increasing competitive pressure in the wireless and home Internet markets. Schulman, who took over last month after leading PayPal, has reportedly described the moment as important for the company’s future.

Why layoff?

Schulman, who has served on Verizon’s board since 2018, steps into the top role with a strong mandate for change. In internal communications cited by the Wall Street Journal, he described Verizon at a “critical juncture” and said the company must “redefine its trajectory” by rebuilding market share and driving more meaningful financial growth.

Specifically, the upcoming layoffs are expected to primarily impact non-union employees, while unionized roles and some retail positions are likely to be largely protected. Along with the job cuts, Verizon also plans to convert about 180-200 company-owned stores to franchises to reduce operating costs without reducing its nationwide retail footprint.

The restructuring plans reportedly come as Verizon continues to lag behind competitors after several quarters of disappointing performance. The CEO is now pursuing what is being described as an aggressive turnaround strategy, with cost cutting at its core. He has repeatedly said that Verizon should become “simpler, leaner and scrappier” with a greater focus on reducing expenses and improving efficiency across all operations.

In a recent address to employees, Shulman said that “cost cutting will be a way of life for us here” and stressed the need to work with far greater discipline. The shift to franchise-operated stores is a key part of that plan, providing Verizon with greater flexibility while reducing the financial burden of maintaining a large network of company-operated retail stores.

When will the jobs be cut?

The sweeping change at Verizon is reportedly expected to begin as early as next week, according to multiple reports. In addition to staff cuts and retail changes, Shulman has placed a renewed emphasis on customer experience, capital discipline and long-term financial health. He outlined plans to “maximize our value proposition, reduce our cost to serve and optimize our capital allocation” as the company moves towards a more competitive and financially resilient future.