Verizon reportedly planning major store closures and layoffs

Another major U.S. company may soon join the growing list of businesses downsizing. Reports circulating on online forums suggest that Verizon is planning to close several retail locations and lay off employees as part of a broader restructuring initiative.

While the company has not officially confirmed the rumors, the announcement is expected to be made around November 20.

Details such as which stores will close or how many jobs will be affected have not been disclosed, but sources suggest that underperforming stores will be the first to shut down. The layoffs could impact employees at both closing and remaining locations.

"It's so crazy to me that the whole company is aware of the layoffs but unaware where specifically. It's causing panic to almost all employees," said an alleged Verizon employee on Reddit.

Another alleged Verizon employee shared similar frustrations:

"This year has been an awful experience as an employee. I've watched my entire market's income reduce significantly," another alleged Verizon employee commented. "The average rep that was pulling ~60k a year is struggling for 45 in my market. Internal chatter is nervous all over, and local management essentially put us all on warning," the user commented.

Several users also claim the company plans to replace some positions with artificial intelligence (AI) tools, suggesting that customer service roles may be among the most affected.

"I have no faith that the new CEO can right the ship. His big solution is to further gut the company and rely more heavily on AI. This is out of touch with what customers are asking for," wrote one user.Verizon is reportedly set to announce store closures and mass layoffs this month.Shutterstock

Verizon's growing focus on artificial intelligence

Verizon (VZ) has been investing heavily in AI through 2024 and 2025 to modernize its operations and support future growth.

In January, the company launched Verizon AI Connect, a comprehensive strategy and suite of products designed to help the business deploy large-scale AI workloads. The initiative integrates Verizon's 5G, fiber, and edge-computing networks to support real-time AI applications.

More Retail Closures:

70-year-old bank chain closing 51 locations across 13 states Macy’s announces unexpected closure ahead of holiday season Iconic gym chain shuts down 23 locations

Verizon has also formed partnerships with major technology firms, including Nvidia (NVDA), Vultr, Google Cloud (GOOG), and Meta (META), to strengthen its AI capabilities.

"We are seeing significant demand for reliable network infrastructure that can support existing AI workloads," said Verizon Business CEO Kyle Malady in a press release. "As the technology evolves, our industry leadership, best-in-class edge-to-cloud connectivity, programmable network and assets will enable us to meet these needs and accelerate innovation."

Verizon AI launches

AI Business Assistant: Answers customer questions via text messages AI Shopping Assistant: Recommends products to customers while making purchases Project 624: AI-powered service and support initiative to improve service across digital, retail, and other channels (introduced in June)

Verizon warns about cost-cutting and profitability concerns

Despite a 1.5% year-over-year revenue increase to $33.82 billion in the third quarter of fiscal 2025, Verizon fell short of analysts' expectations.

Verizon CEO Daniel Schulman acknowledged during an earnings call that the company "is not reaching its potential" and that shareholder returns have been disappointing. He also noted that the company's financial strategy has relied too heavily on price increases without driving meaningful subscriber growth.

"A strategic approach that relies too much on price without subscriber growth is not a sustainable strategy," said Schulman.

To address these challenges, Schulman revealed a plan focused on efficiency and customer experience.

"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.

Schulman also emphasized that AI will play a significant role in the transformation.

"We will leverage AI throughout the company to make it easier for our employees to delight our customers and to dramatically improve service while reducing cost and complexity across the vast majority of our business processes," said Schulman.

A concerning retail trend

While Verizon has not explicitly stated that the layoffs are part of its cost-cutting plan, its growing use of AI to automate processes suggests that human roles may be reduced as technology takes over repetitive tasks.

Research from Harvard Business School notes that relying on layoffs to mitigate temporary economic shifts is often unsuccessful and has hidden costs that make companies less profitable, innovative, and productive over time.

"While layoffs may provide immediate financial relief, they often incur significant long-term costs that can undermine the very stability and performance they aim to protect," said Headhunter & Talent Strategist Bryan Blair in a LinkedIn post.

The broader retail landscape reflects similar pressures. As digital services and AI automation expand, traditional brick-and-mortar stores continue to struggle and are no longer needed to the same scale as before.

"Last year we saw the highest number of closures since the pandemic," said Coresight Research CEO Deborah Weinswig, as Business Wire reported. "Retailers that were unable to adapt supply chains and implement technology to cut costs were significantly impacted, and we continue to see a trend of consumers opting for the path of least resistance."

Coresight Research forecasts that store closures in the U.S. could reach around 15,000 this year. In 2024, there were 7,325 closures, the highest number in four years, outpacing openings as of January 2025.

Several major U.S. retailers have announced 29.6% fewer openings and 334.3% more closures in 2025 compared to the same period in 2024. Coresight notes that closures by Party City, Big Lots, Kohl’s (KSS), and Macy's (M) have contributed to the surge.

Verizon was contacted for comment but did not immediately reply to The Street's request.

Related: Popular discount retailer announces closure amid financial struggles

This story was originally reported by TheStreet on Nov 9, 2025, where it first appeared in the Retail section. Add TheStreet as a Preferred Source by clicking here.

View Comments