U.S. wireless giant Verizon (VZ.N) announced on Thursday it will eliminate more than 13,000 jobs in its largest single layoff, part of a broader effort to cut costs and streamline operations. The company also plans to convert 179 corporate-owned retail stores into franchises and close one location.
Verizon CEO Dan Schulman said the layoffs will reduce “outsourced and other outside labor expenses” and help simplify operations.
“Our current cost structure limits our ability to invest significantly in our customer value proposition,” Schulman said. “We must simplify our operations to address the complexity and friction that slow us down and frustrate our customers.”
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A company spokesperson described the move as “an opportunity for Verizon to reset, restructure and realign our priorities on ways that will help us regain our leadership as a communications provider.”
Schulman also announced a $20 million career transition fund to help affected employees develop “the opportunities and necessary skill sets as we enter the age of AI,” noting that the layoffs are not linked to the company’s use of AI.
Verizon faces increasing competition as rivals AT&T and T-Mobile offer aggressive discounts and trade-in deals. In the third quarter, Verizon added 44,000 monthly bill-paying subscribers, trailing its competitors.
The company employs about 100,000 workers in the U.S., including 70,000 non-union employees, and has cut nearly 20,000 jobs over the past three years.