7 Financial Tips to Help you Navigate
Verizon’s recent announcement of cutting more than 13,000 jobs has brought new urgency to financial planning for many of its employees. Citing a need to restructure the entire company and simplify operations, Verizon will be laying off about 20% of the company’s management workforce. This latest reduction is the largest single round of layoffs in Verizon’s history, including a voluntary separation program (VSP) in 2024 and earlier in 2025 that impacted approximately 4,800 eligible employees. Verizon leadership has acknowledged the turbulence these changes create. Alongside these layoffs, Verizon has established a $20 million Reskilling and Career Transition Fund, designed to support workers affected by this transition as they prepare for what’s next.
When faced with such sweeping changes, it’s understandable to feel concern. But a key way you can regain control is to take proactive steps for your financial wellbeing now. By understanding your Verizon benefits, maximizing your current compensation, and preparing for a possible transition, you can meet these challenges head on. Use our tips below to help you focus on important financial priorities if you’re concerned about Verizon cutting jobs.
Tip 1: Understand Your Verizon Severance Options
Find out what your severance package includes. A typical Verizon severance package may include a lump-sum payment, often calculated based on your salary and years of service—such as four weeks of base pay plus an additional week for each full year you’ve worked at the company. In this current round of cuts, management employees are especially affected, so be sure to clarify how your severance is determined.
Your severance package may also provide benefits like subsidized health insurance premiums for a period of time, career transition resources, and possibly outplacement assistance. Ask your HR representative about eligibility and the types of training or career support available.
Don’t overlook state unemployment benefits, which can add a layer of income security once your severance payments end. The timing and eligibility for unemployment will depend on your state’s rules and when your severance runs out, so double-check these dates to avoid delays.
Tip 2: Ensure Ongoing Healthcare and Insurance Coverage
For most families, maintaining health insurance coverage is a top concern, especially during periods of transition. Severance packages may provide for some period of subsidized health insurance premiums, making it easier to keep your coverage while job hunting. Once that subsidy ends, you are generally entitled to continue employer-sponsored health insurance through COBRA, although you’ll likely be responsible for the full cost.
Be sure to compare COBRA rates with other options, such as joining a spouse’s plan or enrolling in an Affordable Care Act (ACA) Marketplace policy. If you’re close to or over age 65, consider your Medicare options early to avoid coverage gaps. Carefully reviewing your health insurance choices now will help you budget and prevent surprises.
Tip 3: Maximize Your Current Verizon 401(k) Benefits
If you leave or are laid off from Verizon, your ability to continue contributing the company’s 401(k) plan ends. If you’re still employed and concerned about a possible layoff, consider boosting your contributions to the annual limit while you can, especially if your severance includes accelerated vesting of company match. This can help ensure your retirement nest egg continues to grow.
However, keep adequate liquid savings on hand for emergencies before locking extra funds into retirement accounts. Check your current 401(k) balances, contribution rates, and the status of any Verizon stock holdings through your plan provider.
Tip 4: Understand Your Equity & Incentive Compensation
Many Verizon employees—especially those in management—receive restricted stock units (RSUs) or other forms of equity compensation. It is important to know how your layoff impacts these benefits. Generally, vested equity remains yours, but you may have a limited window to exercise stock options. Unvested RSUs or options are often forfeited at termination, but in some cases—including companywide layoffs or restructuring—Verizon may accelerate the vesting schedule. Review your plan rules and contact HR to understand what urgent steps may be necessary to avoid missing out on a substantial payout.
Tip 5: Create a Budget and Track Your Expenses
With job loss comes financial pressure, making it more important than ever to manage your household budget. Begin by tracking all monthly expenses and identifying areas to cut back—especially discretionary spending. With a clear picture of your essential expenses, you’ll know how long severance, unemployment, and savings can carry you.
This disciplined approach lets you stretch your resources, giving you breathing room as you search for your next job or reskill with help from the transition fund.
Tip 6: Evaluate Your Retirement Income Sources
If you’re over 59½, you may have the option to tap retirement accounts without penalty to bridge a cash shortage, but always consider your long-term retirement plan before making withdrawals. Review all retirement income streams—including pension, 401(k), and Social Security—so you know your options.
If you’re under 59½, avoid early withdrawals whenever possible to sidestep taxes and penalties and to protect the growth of your retirement savings.
Tip 7: Consider Working with a Financial Advisor
Navigating a layoff can be a stressful and confusing time. Amid the pressure of finding a new job and managing your finances, it is easy to make mistakes or miss out on important opportunities. A qualified financial advisor can be a valuable partner during this process. They can help you make sense of your options, apply sophisticated financial strategies, and keep your family on the path toward financial security. Give us a call today, so we can provide clarity and help you make informed decisions for your future. We’d be happy to walk you through a complimentary financial plan.
