Verizon Layoffs: Job Cuts vs. Stock Impact – What Reddit is Saying

Verizon's 20% Cut: A Necessary Reset or a Sign of Deeper Trouble?

Verizon's announcement of over 13,000 job cuts – roughly 20% of its management workforce – has sent ripples through the industry. The move, framed as a necessary "reorientation" by CEO Dan Schulman, raises some critical questions about Verizon's strategic direction and its ability to compete in an increasingly cutthroat market. The company's explanation centers around streamlining operations and freeing up capital for investment in customer experience. But is it that simple?

The Numbers Don't Lie, But They Don't Tell the Whole Story

Let's break down the immediate financials. In Q3 2025, Verizon posted earnings of $4.95 billion on $33.82 billion in revenue. Solid numbers, certainly. However, the loss of 7,000 net postpaid connections is a clear warning sign. Rivals T-Mobile and AT&T are aggressively poaching customers (T-Mobile added 1 million, AT&T 405,000), putting immense pressure on Verizon to innovate and retain its existing subscriber base. Schulman argues that the current cost structure "limits" the company's ability to invest. (Specifically, he's talking about customer-facing tech, not just any investment.)

The $20 million "Reskilling and Career Transition Fund" is a nice gesture, but it's a drop in the bucket compared to the potential long-term costs of alienating a significant portion of your workforce. Consider this: 13,000 employees, even at a relatively modest average salary and benefits package, represent a substantial ongoing expense. Cutting them frees up capital, but at what cost to morale and institutional knowledge? Also, how effective will that fund actually be in an economy where tech jobs are already scarce?

The plan to franchise around 180-200 Verizon stores also warrants scrutiny. Franchising can offload operational costs and risks, but it also introduces a layer of separation between Verizon and its customers. Will franchised stores deliver the same level of service and brand consistency? And what happens when those franchisees inevitably start cutting corners to maximize their own profits?

A Glimpse Behind the Corporate Facade

Schulman's memo emphasizes the need to remove "costly complexity and improve investment capability." He claims that complexity and friction within the organization were slowing it down and frustrating customers. This is corporate-speak for "we're bloated and inefficient." It’s the kind of statement that makes you wonder what was happening before Schulman took over in October 2025. Was the previous management asleep at the wheel? I’ve looked at hundreds of these corporate restructurings, and it's rare to see such a blunt admission of internal dysfunction so quickly after a new CEO takes the helm. What exactly was Verizon doing with all that money before if not investing in their customer experience?

It's also worth noting that these layoffs come after media speculation earlier in November that Verizon planned to cut up to 15,000 jobs, which Verizon initially dismissed as rumors. This initial denial creates a credibility gap. Were they genuinely undecided, or were they simply trying to manage public perception? Verizon layoffs: Company to cut thousands of jobs - LiveNOW from FOX. This initial report was followed by an official announcement. Verizon Confirms Mass Layoffs, Will Eliminate 13,000+ Jobs - PCMag.

The broader context is also important. Verizon isn't alone. Microsoft, Starbucks, Intel, and Amazon have all announced layoffs in 2025. This suggests a wider economic slowdown or a structural shift in the labor market, not just Verizon-specific problems. But, Verizon’s rivals are still gaining customers. Is Verizon’s problem a broader economic one, or is it that their rivals have simply surpassed them?

A Desperate Gamble

Verizon is betting that a leaner, more agile organization will be better positioned to compete in the long run. They're essentially ripping off the band-aid to address underlying inefficiencies. But this is a high-stakes gamble. If the cost-cutting measures alienate customers, erode service quality, or fail to stimulate innovation, Verizon could find itself in an even deeper hole. The market is unforgiving, and there's no guarantee that these layoffs will deliver the promised results. Only time will tell if this was a brilliant strategic maneuver or a desperate act of self-preservation.

Is This Just a Fancy Fire Drill?

The layoffs may be a sign of bad luck, or a sign of poor management. Either way, they are a sign that things need to change at Verizon.