Verizon Cuts 3,000 Retail Jobs as AI Replaces Customer Service and Stores Move to Franchises
Verizon is laying off approximately 3,000 retail workers and transferring 274 corporate stores to independent owners under CEO Dan Schulman.
Latest Round of Layoffs
This is the third major round of layoffs under Schulman’s leadership, following a 13,000-job reduction in November 2025 and cuts in May of this year.
AI Integration and Cost-Cutting Measures
Schulman has been vocal about his plans to integrate artificial intelligence (AI) into customer service, aiming to replace "a large percentage" of these roles. Verizon’s AI systems already outperform human agents by achieving nearly 13% higher satisfaction scores in comparable interactions.
The shift to independent franchises reduces Verizon’s fixed retail costs while shifting operational risks to third-party owners, a common industry strategy. This move comes alongside the introduction of simplified wireless plans and loyalty rewards programs as Verizon aims to retain subscribers facing increasing competition from T-Mobile and cable providers.
Industry Trends
Verizon’s embrace of AI-driven cost-cutting reflects a broader trend across corporate America. JPMorgan CEO Jamie Dimon has noted that AI has eliminated 30-40% of jobs in some divisions, and the tech sector alone has seen over 95,000 positions cut in 2026, with AI cited as the primary driver by nearly half of surveyed hiring managers.
Verizon is scheduled to report second-quarter earnings on July 24. However, Schulman has not addressed the potential for AI to replicate in-store retail employee roles beyond answering customer inquiries, involving device trade-ins, troubleshooting hardware, and closing sales face-to-face.