Verizon CEO reveals mistakes that led to over 13,000 layoffs

Core Insights - Verizon is undergoing significant leadership changes and operational restructuring to address recent customer losses and market challenges [1][2][3] Leadership Changes - Verizon replaced CEO Hans Vestberg with Dan Schulman, former CEO of PayPal, on October 6, 2025, amid declining customer numbers [1] - Schulman criticized the company's performance, stating it is "clearly falling short" of its potential due to price increases and customer experience issues [2][3] Customer Loss and Churn Rate - In Q3 2025, Verizon lost 7,000 postpaid phone customers, resulting in a churn rate of 0.91% [2] - Schulman noted that customer satisfaction scores are lower than competitors, attributing this to complex offers and lack of financial flexibility for employees [5][6] Operational Restructuring - Verizon laid off over 13,000 employees to simplify operations and focus on customer-centric strategies [3][4] - Schulman emphasized the need for aggressive transformation to improve shareholder value and customer experience [3][4] Market Position and Competition - Verizon has lost 500 to 700 basis points of market share over the past five years, leading to increased pressure on revenue [5] - The company faces heightened competition, with customer satisfaction scores for postpaid plans below the industry average [6][16] Industry Trends - The telecommunications sector has seen significant layoffs, with Verizon accounting for a large portion of job cuts in November 2025 [11][17] - Job cuts in the telecom industry reached 15,139 in November, marking the highest monthly total since April 2020 [17]