U.S. wireless carrier Verizon Communications Inc. (NYSE: VZ) announced on Thursday plans to lay off more than 13,000 employees as part of cost-cutting and operational restructuring efforts—marking the company's largest single round of job cuts to date.

Verizon also revealed plans to convert 179 company-owned retail stores into franchise operations and close one additional location.

In a memo to employees, newly appointed CEO Dan Schulman stated that the layoffs would affect over 13,000 positions across the organization, alongside significant reductions in outsourcing and external labor expenses.

"Our current cost structure limits our ability to make substantial investments in customer value propositions," Schulman wrote in the memo, which was obtained by Reuters. "We must streamline operations and address complexities and inefficiencies that hinder our performance and frustrate customers."

A company spokesperson confirmed the layoffs, adding, "For Verizon, this is an opportunity to reset, restructure, and refocus our business to reclaim leadership in the telecommunications industry."

Last week, Reuters and other media outlets reported Verizon's plans to cut approximately 15,000 jobs, primarily affecting U.S.-based employees.

Schulman noted that Verizon will establish a $20 million career transition fund to assist affected employees—helping them seize opportunities and acquire necessary skills amid the rise of artificial intelligence (AI).

The company emphasized that the layoffs were not driven by AI adoption.

The wireless carrier faces mounting market pressures, including shrinking new customer growth and intensified competition from legacy rivals offering lower-priced plans, as well as cable operators entering the space.