Telecom Services

Verizon Communications Inc. is undergoing a significant restructuring under its newly appointed CEO, Dan Schulman, who took office in early October 2025. This strategic overhaul, which includes the company's largest-ever layoffs, is a direct response to intense market competition, decelerating subscriber growth, and a mature wireless market where consumers are increasingly reluctant to pay for premium plans. Schulman's vision is to transform Verizon into a 'simpler, leaner, and scrappier business' by implementing aggressive cost transformation, fundamentally rebuilding its expense base, and moving away from an unsustainable reliance on price increases for financial growth. The company has faced mounting pressure from rivals like AT&T and T-Mobile, as well as cable operators entering the mobile service market, resulting in three consecutive quarters of postpaid phone subscriber losses. Schulman emphasized that Verizon's financial growth has relied too heavily on price increases, a strategy he deems unsustainable without corresponding subscriber growth. The layoffs are a critical component of Schulman's comprehensive turnaround strategy, which also includes plans to subsidize expensive handsets to retain customers, strengthen customer loyalty, eliminate practices that detract from customer experience, and leverage AI to simplify offers, all aimed at regaining market share, improving customer experience, and ensuring long-term financial health.

Streamline operations, growing competition from mobile providers, lost internet customers

Comcast is implementing a significant organizational restructuring within its Connectivity & Platforms division, its largest unit encompassing Xfinity internet, mobile, and pay TV services. This initiative, announced in September 2025 with layoffs expected to commence in January 2026, aims to enhance efficiency, improve competitiveness, and address prolonged broadband subscriber losses. The restructuring involves phasing out a three-tier division-based management structure in favor of a more centralized model, thereby removing an entire management layer between corporate headquarters and regional offices. Regional teams will now report directly to a newly created executive position overseeing nationwide operations, a role to be filled by Amy Lynch as president of regional operations. This strategic shift is designed to streamline reporting relationships, standardize pricing nationally, and simplify operations to better align with the company's future strategy, including efforts to boost broadband growth and Xfinity Mobile gains. The move is also a direct response to recent financial pressures, as Comcast reported a loss of 226,000 internet customers in Q2 2025, the highest on record, alongside 325,000 video subscriber losses. The company has been attempting to rebound by focusing on wireless services, integrated offerings, and introducing five-year price locks for new broadband customers. The restructuring aims to create a simpler, leaner, and more agile business to compete more effectively against rivals offering fiber and fixed wireless access, and to position the company for future growth. Customer-facing frontline teams, such as those in customer service and retail, are explicitly stated to be unaffected by these changes.