Verizon Communications Inc. said it will transfer 274 of its corporate-owned retail outlets to independent ownership, a decision that will take about 3,000 employees off Verizon's payroll. The company indicated a significant portion of those workers are expected to be hired by the independent operators who take over the stores. The transition is scheduled to take effect on Aug. 16.
Following the move, Verizon will directly run 1,000 company-owned stores. In addition to those locations, Verizon already has roughly 5,000 stores operated as independent franchises.
The planned workforce change comes after a larger reduction announced late last year, when Verizon said it would cut 20% of its nonunion workforce, a move that affected about 13,000 employees. Company leadership has framed these personnel decisions as part of a broader effort to address a slump in growth at the nation’s largest mobile provider.
Chief Executive Officer Dan Schulman has said difficult choices are necessary as he works to turnaround the company’s performance. Schulman has also signaled that artificial intelligence will reshape parts of the business, stating that AI is expected to replace "a large percentage" of customer service work now performed by employees. He added that the company sees AI as a tool to help improve the customer experience.
In recent months, Verizon has updated its consumer offerings, rolling out a simplified wireless service plan and launching a loyalty rewards program that provides free and discounted deals to existing customers. The company is set to report quarterly earnings on July 24.
For affected retail staff, the company’s public comments emphasize that while those employees will no longer be on Verizon’s payroll after the transfer, many may continue working in the same store environment under new ownership. The exact number of staff who will be rehired by the new independent owners was not specified.
Context for businesses and markets
The move to franchise a portion of the retail network narrows Verizon’s direct retail footprint and increases the share of locations operated by independent partners. The company’s prior workforce reductions and stated plans to implement AI in customer-facing roles underscore an ongoing operational shift affecting labor, retail operations, and customer service models within the telecom sector.