My wife's refurbished phone has the same issues. People she calls cannot hear her and people who call her cannot hear her. We are only 13 months into our two year contract and now my wife's second phone does not work. Her first phone had battery problems so Verizon replaced her first phone with this refurbished phone in January. Now it doesn't work.
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We need to make sure your wife has a phone that she can use for calls ASAP! Does she have a case or screen protector on it? If she does, please have her remove it and try a call to see if that resolves the issue. Also, how does the phone work when she is using Speaker phone?
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