Verizon layoffs: Nearly 3,000 employees affected as company sells 274 stores, trims workforce

Verizon is pressing ahead with a fresh round of restructuring that will reshape its retail footprint and trim its corporate workforce, as the US telecom giant continues efforts to streamline operations amid mounting competitive pressure.

According to a Reuters report, the company will sell 274 company-owned retail stores and eliminate around 500 corporate roles, a move expected to affect nearly 3,000 employees across its retail and head office operations.

The store divestment is scheduled to take effect on 16 August. Once the transaction is completed, Verizon will continue to own around 1,000 retail outlets, while thousands of additional locations will remain under franchise operators that already play a significant role in the company's nationwide presence.

Although the latest restructuring involves significant organisational changes, Verizon said previous store transfers have generally resulted in most retail staff remaining within the business ecosystem. During earlier divestments, roughly 70 per cent of employees working at affected locations joined the franchise operators that assumed control of those stores.

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In an internal communication to employees, the company said it is working closely with franchise partners that collectively operate about 5,000 stores, describing them as an important part of its long-term retail strategy. Verizon added that the collaboration is focused on improving customer experience across franchise locations.

The latest overhaul builds on restructuring measures announced over the past year. In November, Verizon transferred 179 company-owned outlets to franchise operators while permanently closing another retail location. That same month, the company unveiled its largest workforce reduction to date, saying more than 13,000 jobs would be eliminated. Several hundred additional positions were cut in May as part of the continuing programme.

The changes come under the leadership of Dan Schulman, who became Verizon's chief executive in October after serving on the company's board since 2018. He has taken charge at a time when the US wireless industry is facing slower subscriber growth and intense competition from rivals AT&T and T-Mobile.

To retain customers, major telecom providers have increased spending on network expansion while rolling out generous smartphone subsidies, discounted service plans and loyalty incentives. Verizon has also been refreshing its consumer offerings. Last month, the company introduced simplified wireless plans, removed activation and upgrade fees, and launched a loyalty programme featuring discounts and customer rewards.

Beyond pricing and promotions, telecom operators are also investing in future connectivity technologies. In May, Verizon joined AT&T and T-Mobile in forming a joint venture aimed at expanding mobile coverage in rural parts of the United States using satellite technology.

Industry analysts have suggested that the collaboration reflects growing attention on satellite-enabled mobile services, particularly as SpaceX's Starlink continues to expand its ambitions in the communications market.

For Verizon, the latest restructuring represents another step in balancing cost reductions with long-term investments in network infrastructure and customer experience, as competition in the mature US telecom sector continues to intensify.