Last month, Verizon raised eyebrows when it unexpectedly announced that it was replacing its then-CEO Hans Vestberg, who had held the position for over seven years, with Dan Schulman, the former CEO of PayPal. 

Schulman officially took over as Verizon’s CEO on Oct. 6, and he wasted no time in pushing the company in a new direction after its poor performance over the past few months. 

During the third quarter of this year, Verizon saw 7,000 postpaid phone customers cancel their service, leading to the company’s churn rate reaching 0.91%, according to its latest earnings report. This loss in customers comes after Verizon implemented several price increases and cut discounts over the past year.

It also comes at a time when more Americans nationwide are considering switching phone providers due to heightened price sensitivity and a demand for personalized services.

Why U.S. consumers switch phone providers: 

  • Approximately 90% of consumers would consider alternatives to traditional carriers.
  • Roughly 85% consider cost to be a primary factor in selecting a mobile provider.
  • Additionally, about 46% rank a lower-priced plan as their main reason for switching providers, while 33% prioritize better network coverage.
    Source: Oxio
Verizon recently saw a higher number of customers cancel their phone service.

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Verizon CEO flags what’s causing customers to flee

During an earnings call on Oct. 29, Schulman said that Verizon is “clearly falling short” of its potential.

“We are not delivering the shareholder returns our investors expect,” said Schulman. “Despite investing significantly in network leadership, we have not been able to translate that into winning in the market.”

Related: T-Mobile makes bold move to lure AT&T and Verizon customers

He said that price increases, friction in the customer experience, negative value perception, and intense competition in the telecom industry are causing the rapid loss of phone customers. 

Schulman emphasized that Verizon needs to “aggressively transform” its culture and financial profile by being more “customer-centric and executing with financial discipline with a focus on shareholder value.” 

Verizon confirms thousands of layoffs

Following his comments, Verizon recently confirmed that it would lay off over 13,000 employees. In a memo sent to employees, which was obtained by Business Insider, Schulman said the layoffs are part of the company’s efforts to “simplify” operations “to address the complexity and friction” that frustrate customers. 

“It’s important that we direct our energy and resources to set Verizon on a path to success,” wrote Schulman in 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 a statement to TheStreet, Dominick Miserandino, CEO of RTMNexus, emphasized that Verizon’s recent decision to lay off employees won’t be enough for the company to get itself back on track. 

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“Verizon is deploying a bold cost-reduction shock to buy time and restore relevance,” said 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 move from Verizon follows a growing trend in the tech industry. According to recent data from Layoffs.fyi, 237 tech companies have conducted layoffs this year, resulting in over 114,000 tech employees losing their jobs. 

Verizon’s latest move mirrors an alarming trend in corporate America

Many companies across the country are expected to continue to shrink their workforces next year amid economic uncertainty.

How U.S. companies are planning job cuts in 2025 and 2026:

  • In 2025, 39% of companies have already conducted layoffs, and 35% expect to reduce headcount by the end of the year.
  • Economic uncertainty, trade policy, and AI adoption are the top reasons for hiring declines.
  • Additionally, six in 10 companies will likely lay off employees in 2026, while 37% expect to replace roles with AI by the end of next year.
    Source: Resume.org

“There is a push toward leaner, more tech-ready workforces where cost efficiency and agility outweigh tenure or traditional career pathways,” said Kara Dennison, head of career advising at Resume.org, in a statement. “For professionals, this is a call to start reskilling, especially in AI and emerging technologies.”

Read the full memo Schulman sent to Verizon employees below: 

“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“

Related: Verizon CEO sounds alarm on why customers are leaving in droves