What Does Verizon's Former CEO Think of its 13,000 Job Cuts?

The former CEO of Verizon Business Tami Erwin has written am open letter on LinkedIn to the 13,000 members of staff laid off at the firm.

Having spent over 35 years at the US wireless firm and over three years in the CEO seat, Tami said that the news of the layoffs “has weighed deeply” on her.

She wrote: “As I reflect on it tonight, on a quiet Friday night, I’m thinking about the people behind the headlines.”

Instead of causing job losses, the experienced C-suite member said “leaders must modernise more than systems - they must modernise process, communication, empathy and accountability”.

Moving forward

In the letter, Tami offers advice on how to move on from the redundant roles as someone “who will always bleed Verizon red”.

Acknowledging that a job is part of someone’s identity and is deeply personal, she said: “Give yourself permission to grieve,” adding, “take time to define what matters next. Your Verizon experience is meaningful and will open doors.”

The former CEO added that the employees should “hold their head high” as there are “leaders who build cultures rooted in integrity, respect and innovation - and they value talent like yours”.

Verizon's 13,000 job losses

The announcement was made on 20 November in Verizon's single largest layoff, as it works to shrink its work costs and restructure operations.

In a note to employees, CEO of Verizon Communications Dan Schulman said that alongside the job cuts across the organisation, the company will also significantly reduce outsourced and other outside labour expenses.

He wrote in a note to employees seen by Reuters: “Our current cost structure limits our ability to invest significantly in our customer value proposition.

“We must simplify our operation to address the complexity and friction that slow us down and frustrate our customers.”

Dan said the firm was establishing a US$20m career transition fund for laid off employees to focus on the “opportunities and necessary skill sets as we enter the age of AI”, however Verizon said the job cuts were not the result of the company’s use of AI.

Discussing this in her letter, Tami said: “Yes, technology is reshaping everything. AGI, quantum computing, robotics and intelligent networks will define how we live, work and play. The direction is right.

“But here’s the truth,” she added, “technology doesn’t transform a company. People do.”

A career at Verizon

Over 35 years at the company, Tami started in customer service in 1987 for Vodafone, according to her LinkedIn profile.

From here she progressed into leadership roles across the organisation, including Vice President of Customer Service in 1999, Senior Vice President and Chief Marketing Officer in 2012 and Executive Vice President and Chief Operating Officer of Verizon Wireless in 2016.

In April 2019, she became Executive Vice President and CEO of Verizon Business, where she “engineered and executed the strategic overhaul and transformation of the US$31bn business segment, building Verizon’s global 5G technology leadership and creating new business models that produced major gains in revenue, profit and industry-leading margin performance”.

Tami stepped down as CEO in September 2022, but is currently on the Board of Directors for multiple organisations including John Deere, F5, Xerox and York Space Systems LLC.

Concluding her letter of encouragement, she said: “After three and a half decades, my love for Verizon hasn’t faded. I’m forever grateful for the people, the mission and the privilege of serving alongside the V Team.

“However, that’s just chapter one. As someone who left Verizon three years ago, I can tell you that your next chapter will be equally as fulfilling.

“Your story isn’t ending - it’s evolving. And I’m cheering for you, always.”