Verizon Communications Inc. (VZ) CEO Hans Vestberg told employees that the company’s recent layoffs—impacting approximately 1,800 positions—were unavoidable due to ongoing cost optimization and transformation efforts. The move follows a broader shift toward operational efficiency in the telecommunications sector.
- 1,800 employees were laid off in November 2025, primarily in corporate and support roles
- Cumulative job cuts since 2023 exceed 5,000 positions
- Expected annual cost savings of $1.2 billion from restructuring
- Verizon’s adjusted EBITDA margin reached 42.3% in Q3 2025
- Severance packages average 16 weeks of pay and include career transition support
- VZ shares rose 2.3% in after-hours trading post-announcement
Verizon Communications Inc. (VZ) leadership confirmed that the company’s workforce reduction of roughly 1,800 employees, completed in November 2025, was a necessary step in its long-term strategic plan. CEO Hans Vestberg communicated the decision directly to staff, citing structural pressures and the need to realign resources with evolving business priorities. The layoffs primarily affected corporate and support functions, including areas within network operations and administrative services. The move reflects a broader industry trend of consolidation and cost discipline among U.S. telecom providers. Verizon has been streamlining operations since 2023, following the completion of its 5G network expansion and the integration of acquired assets. The November 2025 reductions bring cumulative job cuts to over 5,000 since the start of the company’s restructuring cycle, with the current phase focused on reducing overhead and enhancing digital service delivery. Financially, the company reported a 4.2% year-over-year decline in operating expenses during the third quarter of 2025, attributed in part to the workforce adjustments. Despite a modest 1.1% revenue increase in the same period, Verizon’s adjusted EBITDA margin improved to 42.3%, signaling stronger operational leverage. The company also expects annual savings of approximately $1.2 billion from the latest round of cost reductions. The impact of the layoffs is most pronounced in regional hubs such as New York, Chicago, and Dallas, where affected departments were consolidated into centralized support centers. Employees received severance packages averaging 16 weeks of pay, along with extended health benefits and career transition services. Investors responded positively, with VZ shares rising 2.3% in after-hours trading following the announcement.