Verizon to cut over 13K jobs as it seeks to cut costs under new CEO

Core Viewpoint - Verizon Communications is implementing a significant job cut of up to 13,000 positions as part of a cost-cutting initiative led by new CEO Dan Schulman to enhance operational efficiency and competitiveness in the market [1][3]. Group 1: Job Cuts and Cost-Cutting Strategy - The job cuts will primarily affect non-unionized positions within the organization, confirming earlier reports of potential cuts of up to 15,000 [1]. - Schulman emphasized the need for the company to evolve to meet customer needs and improve market leadership, stating that the current cost structure limits investment in customer value [2][3]. - The company aims to become "simpler, leaner, and scrappier," with a multi-year commitment to reducing costs while investing in marketing and customer experience [5]. Group 2: Market Position and Competitive Landscape - Schulman, who previously served as CEO of PayPal, is focused on driving profitable expansion in both wireless and broadband sectors amid increasing competition from AT&T and T-Mobile [5][7]. - Analysts noted that Verizon faces significant challenges in increasing its postpaid phone customer base, particularly in 2025, while competitors like AT&T and T-Mobile are better positioned to meet their targets [11][12]. - The competitive landscape is intensifying, with major carriers rolling out aggressive promotions to attract new customers as subscriber growth slows [11]. Group 3: Financial Strategy and Customer Focus - Schulman indicated that Verizon's financial growth has been overly reliant on price increases, which is not sustainable in the long term [7]. - A shift towards a customer-first culture is expected to create a more efficient cost structure that supports investments in enhancing customer experience, without compromising profit margins [9][10]. - The company believes there is significant potential for improved bottom-line performance in the industry [10].