Verizon Layoffs: Subscriber Losses and What To Do Now
Verizon's 15,000 Layoffs: A Necessary Bloodletting or a Sign of Deeper Rot?
Verizon is planning to cut 15,000 jobs. That's roughly 15% of their workforce, and it’s happening on the heels of three straight quarters of subscriber losses. New CEO Dan Schulman wants a "scrappier," leaner organization, and layoffs are the chosen instrument. The timing, just a month after Schulman's appointment, suggests a rapid response to perceived underperformance. We’ve seen this playbook before.
The official line is about cost savings and competitiveness against other telecom players. Verizon is, admittedly, on the pricier side. But let's be clear: a 15% headcount reduction isn't just trimming the fat. It’s a strategic amputation. The question is, will it save the patient, or hasten their decline?
The Layoff Contagion and Employee Anxiety
It’s not just Verizon. The article from Forbes points out a wave of layoffs across tech: Salesforce, Oracle, Meta, Google, IBM, Intel. This creates a climate of generalized anxiety. FlexJobs data indicates that 26% of workers are more anxious about layoffs now than six months ago. Another 23% are just as worried, meaning almost half the workforce is bracing for impact. The Glassdoor data is even more telling: mentions of layoffs and job insecurity in company reviews are higher than during the peak of the pandemic. People are spooked.
Annie Rosencrans at HiBob notes red flags: lower engagement, fewer questions in meetings, and a spike in LinkedIn profile updates. (Always a tell.) Employees are hedging their bets, quietly preparing for the worst. Rosencrans advises transparency from HR, but transparency doesn't mean sharing every detail – it means sharing what you know, when you know it. The key is to be honest about the uncertainty, but reinforce the company's direction and values.
The Forbes article recommends proactively updating your resume and LinkedIn profile, building your skills stack (AI literacy, cloud skills, data literacy), and building a portfolio. Good advice, certainly. But it also highlights the brutal reality: in today's economy, career growth is in your hands, not your employer's. Verizon To Axe 15,000 Jobs In New Wave Of Layoffs—What To Do Now
Deeper Rot or Strategic Pruning?
Now, let's dig into the numbers. Verizon hasn't released detailed financials tied directly to these layoffs yet, so we're operating with incomplete data. But we can infer. Subscriber losses are the trigger. The layoffs are meant to address those losses. The implicit assumption is that a leaner Verizon can become more competitive and regain those subscribers.
But is that true? Cutting 15% of your workforce could streamline operations, eliminate redundancies, and free up capital for investment in new technologies or marketing. Could. It could also decimate morale, create knowledge gaps, and lead to a decline in service quality. Which, ironically, could drive even more subscribers away.
And this is the part of the analysis that I find genuinely puzzling. Verizon’s problems aren’t just about being overpriced. The telecom industry is in a state of flux. The rise of 5G, the increasing demand for data, and the competition from streaming services are all reshaping the landscape. Simply cutting costs doesn't address these fundamental shifts.
Are these layoffs a sign that Verizon is adapting to a new reality, or a desperate attempt to cling to an outdated business model? Are they investing in the right areas (5G infrastructure, content partnerships, customer experience), or are they simply trying to squeeze more juice from a shrinking orange? We don't have enough data to say for sure.
What we do know is that Verizon’s new CEO is making a bold, decisive move. He's betting that a smaller, more agile Verizon can outmaneuver its competitors. Whether that bet pays off remains to be seen. But one thing is certain: the next few quarters will be critical. The company's direction, the values guiding decisions, and the support employees can expect will determine whether this bloodletting is a necessary step towards a brighter future, or the beginning of a long, slow decline.
A High-Stakes Gamble
Verizon’s leadership is betting big – and hoping they aren’t holding a losing hand.