Former Verizon CEO's Message to 13,000 Laid-Off Workers

When Verizon announced its largest ever workforce reduction on 20 November, affecting 13,000 employees, the business community took notice.

It was the response from former Verizon Business CEO Tami Erwin that offered a rare glimpse into the human side of corporate restructuring, as she penned an open letter on LinkedIn addressing those impacted by the cuts.

Tami, who spent more than 35 years at the US wireless firm and more than three years in the CEO seat, 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."

Leadership during workforce transitions

Rather than accepting redundancies as an inevitable consequence of business transformation, Tami challenged current leadership thinking. The C-suite member said "leaders must modernise more than systems - they must modernise process, communication, empathy and accountability".

In a note to employees seen by Reuters, CEO of Verizon Communications Dan Schulman explained the rationale behind the cuts, stating that alongside the job losses, the company will also substantially reduce outsourced and other outside labour expenses.

He wrote: "Our current cost structure limits our ability to invest in our customer value proposition. We must simplify our operation to address the complexity and friction that slow us down and frustrate our customers."

Supporting displaced workforce members

In her letter, Tami offered practical guidance for those facing redundancy. 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 ex-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".

Dan announced 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.

Technology versus human capital

Addressing the broader context of technological change, Tami acknowledged the shifting landscape. She said: "Yes, technology is reshaping everything. AGI (artificial general intelligence), 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."

This statement could resonate with HR leaders navigating the balance between technological advancement and workforce development. Tami's career at Verizon demonstrates the value of long-term talent development.

Starting in customer service in 1987 for Vodafone, she progressed through leadership roles 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$31 billion 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, 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. 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."