AT&T and Verizon have cut another 8,000 jobs in one quarter. The move shows how workforce reductions have become routine across large US telecom operators.
Together, the companies employed about 220,500 people in September. That is fewer than AT&T alone employed in 2020. Since then, their combined headcount has fallen by 142,460 roles.
The latest figures arrive during a heated debate about AI and telecom employment. Verizon CEO Dan Schulman has repeatedly warned about major labor disruption from advanced automation.
“I think as I look out over the next couple of years, there’ll be something like 8.5 billion people in the world, but I think there could be at least 100 billion agents,” Schulman told analysts.
He framed software agents as a growth opportunity for Verizon. These agents could support customers, increase usage, and create new data traffic. That vision could help operators sell more premium network services.
However, the job data tells a more complicated story. Verizon and AT&T started cutting staff long before generative AI reached the mainstream. The biggest reductions began before ChatGPT launched publicly in November 2022.
Verizon ended September with 93,300 employees. That was down from 97,600 three months earlier. AT&T cut another 3,700 jobs during the same period.
Investors may welcome leaner operations and higher revenue per worker. Verizon generated far more revenue per employee in 2025 than in 2020. This suggests stronger operational efficiency on paper.
Even so, lower headcount has not transformed operating costs. Verizon’s latest quarterly operating expenses were slightly higher than five years earlier. AT&T’s comparable expenses were broadly unchanged.
Several factors limit the financial impact of layoffs. Wage inflation eats into savings. Severance packages add short-term costs. Outsourcing also shifts spending rather than removing it entirely.
The cuts also reflect traditional telecom changes. Operators have reduced management layers. They have closed stores as more customers shop online. They have exited lower-priority businesses and removed duplicate roles after acquisitions.
For engineers and IT teams, the software side remains especially exposed. AI coding tools can now assist with development tasks. They can generate code, test ideas, and speed routine work.
Yet replacing skilled programmers remains risky. Many telecom systems require deep operational knowledge. Networks also demand accountability when failures affect millions of users.
If companies lose too much internal expertise, recovery becomes harder. AI tools can help teams move faster. They can also create dependency on systems few employees fully understand.
Looking ahead, the current pace raises difficult questions. AT&T could enter the 6G era with a much smaller workforce. Verizon also expects agent-driven traffic growth to make networks more valuable.
“And we will price it as such. You’ll see different pricing plans,” Schulman said.
Telecom operators now face a delicate balance. They must automate aggressively while protecting critical skills. The winners will cut complexity without hollowing out their technical foundations.
