Verizon and AT&T have quietly made new workforce changes as the battle for telecom customers intensifies.
Over the past year, both companies have been reshaping their operations to gain an edge over their rivals. For instance, in August 2025, AT&T CEO John Stankey doubled down on the company’s new return-to-office policy in a memo to employees, encouraging those who prefer remote work to find a new job.
“We run a dynamic, customer-facing business, tackling large-scale, challenging initiatives,” wrote Stankey in the memo. “If the requirements dictated by this dynamic do not align to your personal desires, you have every right to find a career opportunity that is suitable to your aspirations and needs.”
In December 2025, Verizon also shifted gears by laying off 13,000 employees to simplify its operations. Later, at a Morgan Stanley conference in March, Verizon CEO Dan Schulman said he aims to transform the carrier into an “AI-first company.”
Verizon and AT&T cut more jobs
As Verizon and AT&T reshape their operations, both companies have quietly conducted layoffs in the third quarter of 2026.
Verizon’s latest earnings report revealed it ended the third quarter of 2026 with about 93,300 employees, down from 97,600 in the second quarter.
The drop in employees comes after Verizon conducted hundreds of layoffs nationwide in May. In August, it also sold 274 company-owned retail stores and laid off over 3,000 employees, with 500 of those cuts affecting corporate workers.
Read more: Comcast sends wake-up call to employees as customers cut services
At the end of the third quarter, AT&T had 127,150 employees, down from 130,870 at the end of the second quarter. This shift comes after the carrier reportedly laid off employees across multiple departments earlier this year.
In an interview with Wired in September, AT&T Chief Technology Officer Jeremy Legg said the carrier will continue to lay off employees as it invests heavily in artificial intelligence.
“We’re not going to have the same headcount in five years as we do today,” Legg says, adding that AT&T is comparing its staffing levels to those of peers, which plays a role in its decision-making.
Verizon and AT&T cut over 8,000 jobs combined in the third quarter. Headcount across both companies has declined by 142,460 between September 2020 and September 2026, a recent Light Reading report revealed.
The job cuts come at a time when employment in the telecom industry is declining. According to recent U.S. Bureau of Labor Statistics data, the telecom industry has seen employment drop by 5,700 jobs between June and September 2026.
Verizon and AT&T confront a changing telecom landscape
The recent job cuts at Verizon and AT&T also come at a time when both carriers are facing intense competitive pressures in wireless and broadband.
For instance, wireless carriers are facing tougher competition from cable operators, which have been successfully gaining wireless customers through bundled internet and wireless offerings.
In the third quarter, Comcast attracted 368,000 new Xfinity wireless customers in the U.S., according to its latest earnings report. This growth comes after it began attaching a free mobile line to its internet plans in 2025.
Spectrum also reported healthy wireless customer growth, adding 406,000 new wireless customers in the second quarter, its most recent earnings report revealed.
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The additions follow the launch of its $1,000 savings guarantee earlier this year, which promises new and existing Spectrum internet customers who transfer at least two mobile lines from AT&T, T-Mobile or Verizon $1,000 in first-year savings.
Cable companies aren’t the only competitors putting pressure on traditional wireless carriers. SpaceX’s Starlink is another emerging rival.
Starlink, which offers satellite internet packages currently ranging from $55 to $130 per month, has seen its U.S. broadband business grow considerably. New Street Research estimates that Starlink now serves about 4 million U.S. broadband customers, according to a Telecom Gazette report. This figure is higher than the 2.7 million the research firm estimated in May.
SpaceX is also pursuing a terrestrial network for its Starlink Mobile service. On an August earnings call, SpaceX Chief Operating Officer Gwynne Shotwell discussed the service’s potential to draw customers away from established wireless carriers, saying she expects it to “acquire quite a few” customers from Verizon, AT&T and T-Mobile.
Telecom industry prepares for an AI-driven workforce shift
Amid rising competition, telecom companies across the globe are preparing to reshape their workforces with AI to improve productivity, a move many expect will lead to future job cuts.
According to a recent survey from EY-Parthenon, 97% of global telecom leaders expect AI to deliver significant productivity gains within five years.
Also, 69% expect three-quarters of their workforce to be either upskilled or replaced over the next five years as organizations increasingly move towards AI-enabled operating models.
“The workforce challenge extends beyond reskilling,” said Cédric Foray, an EY Global telecommunications sector leader, in a press release.
“Telecom companies must also rethink organizational structures, redesign roles and processes, and develop new leadership capabilities to support the next phase of transformation,” he continued. “Leaders that simply add AI to existing ways of working risk missing much of the value. The opportunity lies in reengineering how work gets done across the organization.”
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