Key Takeaways
- Another wave of workforce reductions at Verizon is scheduled to be disclosed Thursday
- CEO Daniel Schulman aims to achieve $5 billion in operational cost reductions by the end of 2026
- BNP Paribas Exane reduced VZ’s price objective from $46 down to $44 while keeping a neutral stance
- Shares declined 0.9% to $42.28 on Tuesday; posting 9% gains year-to-date including dividends
- Wall Street consensus remains at Hold with a mean price objective of $50.28
Verizon will unveil another wave of workforce reductions this Thursday morning, as reported by an employee with knowledge of the situation. The specific headcount impact remains undisclosed at this time.
Shares of VZ closed at $42.28 during Tuesday’s session, reflecting a 0.9% decline.
Verizon Communications Inc., VZ
These upcoming job eliminations represent a continuation of the aggressive cost-reduction strategy CEO Daniel Schulman has pursued since assuming leadership in October 2025. Expense management has become a cornerstone of his operational approach.
Back in November 2025, Verizon executed its most significant workforce reduction in company history, eliminating 13,000 positions. This was followed by an additional, though smaller, reduction round in May 2026. By year-end 2025, Verizon’s total workforce stood at 89,900.
During a January earnings conference call, Schulman outlined Verizon‘s ambitious goal of securing $5 billion in operating expense reductions throughout 2026, emphasizing that workforce reductions would account for a “substantial portion” of these savings.
In a December internal employee webcast, Schulman was blunt: “If we don’t have enough money to put back into our value proposition to customers, we are going to continue to shrink.”
He further acknowledged that customer satisfaction metrics were “not great” and pointed out the company’s market share erosion over the preceding five years.
Wall Street Turns More Cautious
Also on Tuesday, BNP Paribas Exane lowered its price objective for VZ shares from $46 to $44, maintaining its neutral outlook. This revised target suggests approximately 4% potential upside from current trading levels.
The overall Street sentiment remains lukewarm. Currently, nine analysts recommend buying VZ, while twelve maintain hold recommendations. The average price target across all analysts sits at $50.28.
Citigroup represents the most optimistic view, raising its target to $55 with a Buy recommendation in March. Morgan Stanley maintains an equal weight stance with a $50 price objective.
Recent Financial Performance and Strategic Moves
Verizon’s latest quarterly report delivered earnings per share of $1.28, exceeding the analyst consensus of $1.21. However, revenue totaled $34.44 billion, falling just short of the $34.82 billion Wall Street projection.
Top-line revenue increased 2.7% compared to the prior-year period. Management’s full-year 2026 EPS forecast ranges between $4.95 and $4.99.
During the first quarter, Verizon secured a net increase of 55,000 postpaid phone subscribers, surpassing market expectations.
Earlier in 2026, Verizon finalized its $20 billion purchase of Frontier Communications. Under the regulatory approval conditions, certain Frontier workers have received four-year protections against involuntary termination.
Verizon recently introduced a flat-rate “Simplicity plan” last month and has been deploying artificial intelligence technology within customer service operations to drive down costs while enhancing service quality.
Planned capital spending for 2026 falls within the $16 billion to $16.5 billion range, representing a decrease from prior years.
On a total return basis, VZ shares have gained 9% year-to-date, slightly underperforming the S&P 500’s 10.5% advance during the same timeframe.
Verizon’s second-quarter earnings release is scheduled for July 24.
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