Verizon Bets on AI and Leaner Operations to Curb Customer Exodus

This analysis is based on original reporting from CX Dive. For daily updates on customer experience trends, subscribe to the CX Dive newsletter.

In a bold move to tackle customer churn, Verizon is overhauling its strategy to prioritize end-to-end experience, leveraging artificial intelligence to anticipate issues and personalize service. The shift comes as the telecom giant navigates a competitive landscape where customer retention is increasingly tied to seamless digital interactions.

CEO Dan Schulman outlined the plan in a recent earnings call, emphasizing that the company is reallocating resources from a recent round of layoffs toward customer-centric investments. "No company ever cost-cut its way to greatness," Schulman noted. "We're scrutinizing every dollar of OpEx and CapEx to ensure it drives loyalty and trust."

Verizon cut 13,000 jobs in November, targeting what Schulman called "redundant structures and underperformance." The reductions form part of a broader $5 billion operational savings initiative, with freed-up capital being funneled into AI deployment and process simplification. "The first step is to stop doing things customers hate," Schulman said. "Fix the end-to-end experience. It's not rocket science, but it's hard to execute."

The company has already begun addressing friction points in onboarding, billing, and customer service. Early results show promise: Verizon Consumer reported 551,000 postpaid phone net additions in Q4 2025, up from 367,000 a year earlier—a reversal after three quarters of net losses.

Industry observers note that Verizon's push reflects a broader telecom trend where AI-driven personalization is becoming a key differentiator. However, the reliance on layoffs to fund improvements raises questions about long-term employee morale and service quality.

Voices from the Ground:

Priya Chen, Telecom Analyst at Hudson Insights: "Verizon's data shows that simplifying touchpoints can stem churn. But true loyalty requires consistent investment—not just one-off cost-cutting."

Marcus Boone, Former Verizon Contractor: "It's ironic. They're firing thousands while talking about 'customer-first.' AI can't replace the human insight needed to solve complex service issues."

David Park, Small Business Owner in Ohio: "As a long-time customer, I've noticed more dropped calls and billing errors lately. If this AI plan actually makes support faster, I'll stay. But they're on thin ice."

Rebecca Shaw, CX Consultant: "Schulman's right—fixing basics isn't glamorous, but it's where most telecoms fail. If Verizon uses AI to proactively resolve complaints, it could set a new industry standard."