*

Verizon job cuts are equal to 20% of non-union employee

wage

costs

*

Wireless company to convert 179 company-owned retail

stores to

franchise operations

*

Verizon to create $20 million fund to assist laid off

employees

with job search, skills in AI era

By David Shepardson

WASHINGTON, Nov 20 (Reuters) - U.S. wireless carrier

Verizon said Thursday it will cut more than 13,000 jobs

in its largest single layoff as it works to shrink costs and

restructure operations.

Verizon also said it plans to convert 179 corporate-owned

retail stores into franchised operations and close one store.

Verizon's new CEO, Dan Schulman, said in a note to

employees the company would reduce its workforce by more than

13,000 employees across the organization, and significantly

reduce outsourced and other outside labor expenses.

"Our current cost structure limits our ability to invest

significantly in our customer value proposition," Schulman wrote

in a note to employees seen by Reuters. "We must simplify our

operations to address the complexity and friction that slow us

down and frustrate our customers."

A company spokesperson confirmed the job cuts, saying "this

is an opportunity for Verizon to reset, restructure and realign

our priorities on ways that will help us regain our leadership

as a communications provider."

Reuters and other outlets reported last week Verizon was

planning to cut around 15,000 jobs. Most of the cuts are to its

U.S. workforce.

Schulman said Verizon was establishing a $20 million career

transition fund for laid-off employees to focus on the

"opportunities and necessary skill sets as we enter the age of

AI."

Verizon said the job cuts were not the result of the

company's use of AI.

The wireless carrier faces mounting market pressure amid

concerns over a shrinking pool of new customers as older rivals

offer cheaper plans and cable operators jump into the fray.

Schulman, a Verizon board member since 2018, was named CEO in

October, arriving from the helm at PayPal and facing promotions

by rivals AT&T ( T ) and T-Mobile around the launch of

new iPhone models, with aggressive discounts and trade-in deals.

Verizon added just 44,000 monthly bill-paying wireless

subscribers in the third quarter, lagging AT&T ( T ). T-Mobile led

with more than 1 million net subscriber additions.

Verizon had about 100,000 U.S. employees at the end of 2024

including about 70,000 non-union employees. The

telecommunications company cut almost 20,000 jobs over the prior

three years.

Verizon spent $52 billion to acquire key wireless midband

spectrum in a 2021 auction to boost its 5G network. The company

also struck a $20 billion deal to acquire Frontier

Communications last year and spent $6 billion to

acquire prepaid mobile phone provider TracFone Wireless.