Verizon CEO sends blunt warning on future of jobs after layoffs

Verizon has been undergoing a major restructuring since Dan Schulman took over as its CEO in October last year. The company laid off over 13,000 employees in November, and Schulman is now warning that a growing shift in the job market could lead to more unemployment.

The carrier has been shrinking its workforce amid customer retention struggles. Last year, Verizon's postpaid phone churn, the percentage of customers who cut their service, reached 0.98%, up from 0.88% in 2024, according to its fourth quarter earnings report for 2025.

During an earnings call in January, Schulman revealed that Verizon lost about 2.25 million customers over the past three years, mainly due to price increases and intensified competition in the wireless industry.

In a memo sent to laid-off employees in November, Schulman said he aims to "simplify" the company's operations and "address the complexity and friction" that frustrate customers, and that the job cuts were a crucial step toward accomplishing this goal.

"It's important that we direct our energy and resources to set Verizon on a path to success," wrote Schulman in the memo. "The actions we're taking are designed to make us faster and more focused, positioning our company to deliver for our customers while continuing to capture new growth opportunities."

Verizon CEO warns of a growing threat to jobs

Another way Verizon aims to streamline its operations is by ramping up its use of artificial intelligence (AI), which will help it cut costs. The company is already using AI to help assist its customer support team and offer customers customized deals.

During a Morgan Stanley conference last month, Schulman said he aims to transform Verizon into an "AI-first company."

While Verizon didn't cite AI as the main reason for its recent job cuts, Schulman has predicted that AI will lead to 20% to 30% unemployment in the job market over the next two to five years. He also previously warned that the rise of humanoid robots could threaten manual-labor jobs.

Schulman said employers need to get real about the disruption AI could cause in the job market, in a recent interview with The Wall Street Journal.

Related: Verizon raises price on key discounted offer for customers

"It's a very difficult time, and everyone knows it is," Schulman said in the interview. "So I think being authentic, being realistic, telling the truth, as best you can."

He said that this growing reality has led him to start a $20 million career-transition and retraining fund for the "age of AI" late last year.

"Like it or not, we live in the age of AI. I happen to like it," he said. "It's like we all wanted to live in the Renaissance or, like, when fire was first invented – how cool would that be? We're in that stage. We're just not appreciating it for what it could be."

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Schulman said that he has encouraged employees in multiple meetings to leverage AI as he believes it is vital to the company's future performance.

He has also encouraged them to discuss AI with their children and even recommended that they test the technology by using it to write their obituary and poems to loved ones.

Schulman expressed to the Journal that AI may reach human-level ability by the end of 2027, while Quantum computing will be the next big thing and "change everything again." He also said that the growing use of humanlike robots may follow closely behind.

"That's definitely the world that we're in right now," he said. "It's really fast, fast changing."

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The rise of AI in the workplace is fueling concerns

Schulman's blunt take on the rise of AI comes at a time when Americans across the nation are concerned about their jobs being replaced by this technology.

A recent survey from Quinnipiac University found that 7 in 10 Americans believe that AI will cut their jobs.

How Americans feel about AI in the workplace:

• Approximately 71% of white-collar workers and 73% of blue-collar workers believe advancements in AI are likely to result in a decline in job opportunities.
• Among employed Americans, 30% are either very or somewhat concerned that AI may make their jobs outdated.
• Additionally, 51% said the pace of AI development is moving quicker than they expected.
• Overall, 80% are either very concerned or somewhat concerned about AI.
  
  Source: Quinnipiac University

"Americans are more worried about what AI may do to the labor market than about what it may do to their own jobs," said Tamilla Triantoro, an associate professor at Quinnipiac University School of Business.

"People seem more willing to predict a tougher market than to picture themselves on the losing end of that disruption – a pattern worth watching as the technology moves deeper into the workplace," she added.

These concerns are valid, as data from Challenger, Gray & Christmas last month found that 54,836 job cuts in 2025 were due to AI. In another report earlier this month, the firm revealed that the technology was the main cause of 27,645 layoffs this year.

"Companies are shifting budgets toward AI investments at the expense of jobs," said Andy Challenger, workplace expert and chief revenue officer at Challenger, Gray & Christmas, in the report. "The actual replacing of roles can be seen in Technology companies, where AI can replace coding functions."

"Other industries are testing the limits of this new technology, and while it can't replace jobs completely, it is costing jobs," he continued. "The importance of upskilling and reskilling cannot be overstated. Workers need to familiarize themselves with AI, including prompting and generating assets."

Related: Leaked Meta memo reveals company's bizarre plan after layoffs

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This story was originally published April 23, 2026 at 8:17 AM.