Outsourced workers hit hardest as Verizon cuts 13,000 jobs
CALIFORNIA, UNITED STATES — Verizon’s latest workforce shake-up is hitting outsourced and contract staff particularly hard, as the telecommunications giant prepares to cut 13,000 jobs in a sweeping restructuring, according to a report from The Hollywood Reporter.
The move, announced under new chief executive officer (CEO) Dan Schulman, aims to streamline operations for the so-called “age of AI” but leaves many contract workers facing uncertain futures.
Verizon’s major layoff targets outsourced roles
While Verizon employs nearly 100,000 full-time staff, the recent layoffs include significant cuts to outsourced and external labor, reflecting a broader industry trend of trimming contract-based roles.
The report noted that the company is cutting 13,000 jobs and reducing its outsourced and external labor costs, underscoring the focus on non-permanent staff in the restructuring.
This follows similar moves by major corporations navigating AI-driven efficiency. Amazon has cut 14,000 positions, Microsoft 15,000, and Paramount around 2,000, signaling a competitive push to do more with fewer staff.
These layoffs are less about immediate financial pressure and more about preparing workforces for technological transformation.
Reskilling fund offers lifeline for laid-off workers
In an unprecedented step, Verizon has launched a $20 million reskilling and career transition fund for those facing layoffs.
“This fund will focus on skill development, digital training and job placement to help our people take their next steps. Verizon is the first company to set up a fund to specifically focus on the opportunities and necessary skill sets as we enter the age of AI,” said Schulman in the memo.
Schulman sees AI as a tool to reshape the business, promising improvements in customer experience, marketing, and offering personalization.
“I am a strong believer in the growing power and resulting opportunities created by AI. We have barely scratched the surface of how AI-powered innovation can transform our customer experience,” Schulman told analysts during his first earnings call as CEO.
As the outsourcing industry adapts to these shifts, Verizon’s approach underscores the growing need for companies to support contract and outsourced staff during transitions.
By pairing job reductions with targeted retraining, the company is attempting to balance operational efficiency with workforce sustainability.
This signals a potential blueprint: while AI may drive leaner operations, firms that invest in reskilling could mitigate the social and economic costs of mass layoffs, particularly for outsourced labor that often bears the brunt of corporate restructuring.
