Verizon Communications is set to reduce its workforce by approximately 3,000 employees as it prepares to divest 274 of its retail stores to franchise operators. The announcement was made Thursday and reflects a continuation of the company’s efforts to adjust its retail footprint.

Following the divestiture, Verizon will retain ownership of about 1,000 corporate-run retail locations. An internal memo reviewed by sources indicates that management considers maintaining a minimum of 1,000 corporate stores essential for the company’s long-term strategy over the next three years.

The majority of the planned layoffs are expected to occur as a result of the transfer of retail stores to franchise ownership. Additionally, approximately 500 corporate employees will be impacted, according to people familiar with the matter. As of the end of 2025, Verizon employed around 89,900 full-time workers, based on figures released in its annual report.

This move aligns with Verizon’s ongoing efforts to streamline operations, following a similar divestiture last fall. At that time, the company sold roughly 200 retail stores and carried out its largest workforce reduction, cutting more than 13,000 jobs. The current reduction signals a continuation of Verizon’s focus on reshaping its physical retail presence amid shifting market dynamics.