Final month, Verizon raised eyebrows when it unexpectedly introduced that it was changing its then-CEO Hans Vestberg, who had held the place for over seven years, with Dan Schulman, the previous CEO of PayPal.
Schulman formally took over as Verizon’s CEO on Oct. 6, and he wasted no time in pushing the corporate in a brand new path after its poor efficiency over the previous few months.
Through the third quarter of this yr, Verizon noticed 7,000 postpaid cellphone prospects cancel their service, resulting in the corporate’s churn price reaching 0.91%, in accordance with its newest earnings report. This loss in prospects comes after Verizon applied a number of worth will increase and reduce reductions over the previous yr.
It additionally comes at a time when extra People nationwide are contemplating switching cellphone suppliers because of heightened worth sensitivity and a requirement for customized providers.
Why U.S. customers change cellphone suppliers:
- Roughly 90% of customers would think about options to conventional carriers.
- Roughly 85% think about price to be a main issue in choosing a cell supplier.
- Moreover, about 46% rank a lower-priced plan as their essential cause for switching suppliers, whereas 33% prioritize higher community protection.
Supply: Oxio
Verizon not too long ago noticed the next variety of prospects cancel their cellphone service.
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Verizon CEO flags what’s inflicting prospects to flee
Throughout an earnings name on Oct. 29, Schulman mentioned that Verizon is “clearly falling short” of its potential.
“We are not delivering the shareholder returns our investors expect,” mentioned Schulman. “Despite investing significantly in network leadership, we have not been able to translate that into winning in the market.”
Associated: T-Cellular makes daring transfer to lure AT&T and Verizon prospects
He mentioned that worth will increase, friction within the buyer expertise, unfavourable worth notion, and intense competitors within the telecom business are inflicting the fast lack of cellphone prospects.
Schulman emphasised that Verizon must “aggressively transform” its tradition and monetary profile by being extra “customer-centric and executing with financial discipline with a focus on shareholder value.”
Verizon confirms hundreds of layoffs
Following his feedback, Verizon not too long ago confirmed that it could lay off over 13,000 workers. In a memo despatched to workers, which was obtained by Enterprise Insider, Schulman mentioned the layoffs are a part of the corporate’s efforts to “simplify” operations “to address the complexity and friction” that frustrate prospects.
“It’s important that we direct our energy and resources to set Verizon on a path to success,” wrote Schulman within the memo. “The actions we’re taking are designed to make us faster and more focused, positioning our company to deliver for our customers while continuing to capture new growth opportunities.”
In an announcement to TheStreet, Dominick Miserandino, CEO of RTMNexus, emphasised that Verizon’s latest resolution to put off workers gained’t be sufficient for the corporate to get itself again on observe.
Extra Telecom Information:
- T-Cellular publicizes free supply for Verizon and AT&T prospects
- Verizon CEO sounds alarm on why prospects are leaving in droves
- Spectrum raises crimson flag on explanation for fleeing buyer drawback
“Verizon is deploying a bold cost-reduction shock to buy time and restore relevance,” mentioned Miserandino. “The job cuts are necessary, but the success will depend on how well Verizon converts the leaner structure into faster growth, improved customer experience and competitive differentiation. If they simply shrink the cost base without reinvesting into product, service, and market positioning, they may end up stabilising the ship but not charting a new course.”
The transfer from Verizon follows a rising development within the tech business. In response to latest knowledge from Layoffs.fyi, 237 tech corporations have carried out layoffs this yr, leading to over 114,000 tech workers dropping their jobs.
Verizon’s newest transfer mirrors an alarming development in company America
Many corporations throughout the nation are anticipated to proceed to shrink their workforces subsequent yr amid financial uncertainty.
How U.S. corporations are planning job cuts in 2025 and 2026:
- In 2025, 39% of corporations have already carried out layoffs, and 35% anticipate to scale back headcount by the tip of the yr.
- Financial uncertainty, commerce coverage, and AI adoption are the highest causes for hiring declines.
- Moreover, six in 10 corporations will possible lay off workers in 2026, whereas 37% anticipate to interchange roles with AI by the tip of subsequent yr.
Supply: Resume.org
“There is a push toward leaner, more tech-ready workforces where cost efficiency and agility outweigh tenure or traditional career pathways,” mentioned Kara Dennison, head of profession advising at Resume.org, in an announcement. “For professionals, this is a call to start reskilling, especially in AI and emerging technologies.”
Learn the complete memo Schulman despatched to Verizon workers under:
“Team,
Thank you for the many messages you’ve shared about the work we need to do to strengthen our company. I appreciate your ideas and candor. The pride you have for the role that Verizon plays in people’s lives is abundantly clear, as is your desire for us to lead the industry.
As I shared at our most recent all-employee meeting, we need to change and evolve as a company to meet the needs of our customers and expand our market leadership. 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.
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.
Today, we will begin reducing our workforce by more than 13,000 employees across the organization, and significantly reduce our outsourced and other outside labor expenses. We deeply value their contributions and are committed to providing comprehensive resources to support our employees throughout this transition. Every part of the company will experience some level of change, and we will have conversations with every affected employee to ensure they are treated with the utmost respect and care.
Changes in technology and in the economy are impacting the workforce across all industries. We see it in our families and within our communities. To help our people prepare for their future, we have established a $20 million Reskilling and Career Transition Fund for employees departing Verizon. This fund will focus on skill development, digital training and job placement to help our people take their next steps. Verizon is the first company to set up a fund to specifically focus on the opportunities and necessary skill sets as we enter the age of AI. It is my intent to also work with other companies and the public sector to address the opportunities and challenges in a world where technology will impact all of us.
Change is necessary, but it can be difficult — especially when it affects valued teammates. It’s important that we direct our energy and resources to set Verizon on a path to success. The actions we’re taking are designed to make us faster and more focused, positioning our company to deliver for our customers while continuing to capture new growth opportunities. Being a customer-first, cost-conscious culture will be a way of life for us. And each of us is responsible for living up to that commitment.
In the coming weeks, your leaders will share new organizational structures and priorities that align with our direction as a company. As we make these changes, we must work together to ensure we end the year strong, with a running start to 2026. The fourth quarter is an extremely important one for us, so I appreciate everyone bearing down to make it a great one, even in the face of change.
Our future will be defined by how we lead from here — with clarity, focus and a shared vision to win in the market and deliver meaningfully for our customers, shareholders and each other. To those colleagues who will be leaving, thank you for your many contributions. To those continuing with us, I appreciate your continued commitment as we build a stronger Verizon together.
Dan“
Associated: Verizon CEO sounds alarm on why prospects are leaving in droves
