TLDRs;
- Verizon plans to cut 15,000 jobs, the largest workforce reduction in its corporate history, under CEO Dan Schulman.
- The company will eliminate over 20% of non-union management roles and franchise 180 retail stores.
- Strong quarterly results and higher free cash flow forecasts support Verizon’s aggressive restructuring efforts.
- Facing stiff competition, Verizon is tightening costs, revamping strategy, and targeting modest profit growth next year.
Verizon Communications Inc. (VZ) is preparing for one of the most consequential restructurings in its corporate history, with plans to cut 15,000 jobs, representing roughly 15% of its U.S. workforce, according to sources familiar with the matter.
The sweeping overhaul, expected to begin as early as next week, marks the largest single round of layoffs the telecom giant has ever undertaken.
The decision comes just months after Dan Schulman, former PayPal chief, took the helm as Verizon’s new CEO. Schulman has moved aggressively to streamline operations amid intensifying pressure from competitors like AT&T, T-Mobile, and cable providers bundling wireless offerings at aggressive price points.
The restructuring plan underscores Schulman’s broader push to reposition the company for leaner operations, higher efficiency, and a more defensible long-term growth strategy.
Verizon Communications Inc., VZ
Largest Cuts in Company History
The planned layoffs dwarf Verizon’s previous workforce reductions. The company, which employed about 100,000 people in the U.S. at the end of 2024, has already been trimming its payroll over the past several years. Nearly 20,000 jobs were eliminated across three years, followed by an additional 4,800 voluntary exits last year.
But the upcoming cuts represent an unprecedented shift. More than 20% of non-union management roles will be eliminated, fundamentally reshaping the company’s internal structure. The effort reflects Schulman’s desire to flatten management hierarchies, reduce operational redundancy, and accelerate decision-making.
This move also signals a more aggressive approach to workforce optimization than under previous leadership teams, one that places cost discipline and competitive agility at the forefront.
Retail Network Faces Big Changes
Alongside layoffs, Verizon is preparing another major transformation, the conversion of around 180 corporate-owned retail stores into franchised locations. The shift aligns with a broader trend among telecom and consumer electronics companies, which have increasingly turned to franchise models to reduce overhead while maintaining customer-facing presence.
This transition will likely reshape the roles of retail employees and could signal the beginning of a longer-term shift away from fully owned store operations.
Despite widespread changes, the company’s market reaction was notably upbeat. Verizon shares rose 1.5% following early reports of the restructuring plan, an indication that investors view Schulman’s cost-cutting measures as necessary and overdue.
Strong Financial Signals Support Overhaul
The restructuring comes on the heels of stronger-than-expected financial performance. In its July 2025 quarterly update, Verizon raised its 2025 profit forecast, boosted by solid demand for premium wireless plans. Revenue for the second quarter reached US$34.5 billion, beating analyst expectations, while adjusted EPS hit US$1.22.
CFO Tony Skiadas highlighted that recent U.S. tax reforms could add US$1.5 billion to US$2 billion in free cash flow this year. With this windfall, Verizon updated its 2025 free cash flow guidance to US$19.5–US$20.5 billion, significantly higher than the earlier US$17.5–US$18.5 billion range.
These robust financial signals give Schulman cover to implement disruptive changes, even as Verizon navigates shifting subscriber dynamics, including the loss of 9,000 postpaid wireless customers from recent price hikes.
Competition Forces Strategic Reset
The telecom sector remains intensely competitive, pushing Verizon to rethink its pricing, bundling, and customer-acquisition strategies. After losing wireless customers, the company found success on its broadband front, adding 293,000 subscribers thanks to expanding fiber networks.
To regain momentum, Verizon is leaning into price-lock promises, bundled services, and targeted promotions. The company aims for 1% to 3% profit growth in 2026, despite market headwinds.
Schulman’s restructuring is a clear signal that Verizon intends to compete not just with rivals’ pricing strategies but with operational efficiency and sharper financial discipline.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
