Verizon plans a harsh change after major customer losses | Official Website of Louis Velazquez, entrepreneur, finance guy and tech innovator

Verizon has been on a downward spiral this year after it frustrated its phone customers with a series of price increases rolled out over the past few months.

During the third quarter of this year, Verizon lost 7,000 postpaid phone customers, as its churn rate reached 0.91%, according to its latest earnings report. This loss is alarming, given that during the same quarter in 2024, the phone carrier attracted 18,000 new postpaid phone customers.

During an earnings call on Oct. 29, Dan Schulman, who became CEO of Verizon on Oct. 6, admitted that price increases are one of the main reasons phone customers are leaving the company in large numbers.

“For the past few years, our financial growth has relied too heavily on price increases, a strategic approach that relies too much on price without subscriber growth is not a sustainable strategy,” said Schulman.

“Every year, it gets harder to grow as we lap past price increases and experience higher churn. This cannot continue, and there is no question that meaningful change is needed.”

It is no surprise that Verizon is losing phone subscribers at a rapid rate, as many consumers nationwide are seeking more affordable phone plan options as they grapple with price hikes.

How higher phone bills are impacting Americans:

The average cost of a single-line phone plan is $76 per month. Verizon customers spend an average of $79 per month on a single-line phone plan.
About 42% of Verizon, T-Mobile, and AT&T customers have seen their phone bills increase in the past year, which is 7% higher than average.
Also, 58% of Verizon, T-Mobile, and AT&T customers are considering switching to a different phone carrier as prices go up.
Verizon risks losing a combined 84.7 million customers due to high mobile plan pricing. Source: WhistleOut

Verizon is losing thousands of phone customers after recent price increases.

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Verizon makes a harsh cost-cutting move

As Verizon bleeds phone customers, it is undergoing a significant transformation, and that reportedly involves mass layoffs.

The phone carrier plans to cut 15,000 jobs, primarily through layoffs, in an effort to reduce costs as it faces increased competition from its competitors, according to a recent report from The Wall Street Journal.

In addition, Verizon plans to convert roughly 200 stores into franchised operations, which will result in employees being removed from its payroll, according to the Journal.

This round of job cuts is expected to be the steepest the phone carrier has ever conducted and is anticipated to take place next week.

The alleged plan from Verizon comes after Schulman said during the company’s earnings call last month that Verizon’s top priority is to “build loyalty and drive significant improvements in retention,” which involves making the company “leaner.”

“We are reinventing how we operate to make Verizon more agile and efficient,” said Schulman. “You should expect disciplined execution across marketing, operations and service. We will invest significantly across all elements of our marketing mix and customer experience to drive mobility and broadband growth, and we will fund these investments by aggressively reducing our entire cost base.

“We will be a simpler, leaner and scrappier business,” he added. “This work is overdue and will be multiyear and an ongoing way of life for us.”

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He also said the company will ramp up its use of artificial intelligence, which will be used for “reducing cost and complexity across the vast majority” of its “business processes.”

In a statement to TheStreet, RTMNexus CEP Dominick Miserandino emphasized that Verizon must do much more than conduct mass layoffs to get itself back on track.

“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.”

Verizon’s latest move mirrors an alarming workplace trend

Verizon’s decision to cut jobs follows a growing trend in the tech industry. According to recent data from Layoffs.fyi, 229 tech companies have conducted layoffs this year, resulting in over 112,000 tech employees losing their jobs.

Many companies nationwide are expected to continue to make steep cuts to 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 head count by the end of the year.
Also, 1 in 10 companies have implemented a hiring freeze, and 41% have even reduced hiring.
Economic uncertainty, trade policy, and AI adoption are the top reasons for hiring declines.
Additionally, 6 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.”