Verizon Communications is poised for one of the most significant transformations in its history. The telecom giant intends to cut up to 15,000 jobs—approximately 15 percent of its workforce—as part of a comprehensive restructuring initiative aimed at revitalizing growth and stabilizing finances following months of subscriber losses. This ambitious plan is spearheaded by newly appointed CEO Dan Schulman, who assumed his role last month after serving on Verizon’s board since 2018 and previously leading PayPal. Schulman has taken on the position with a clear mandate for substantial change.
According to internal communications referenced by the Wall Street Journal, he informed employees that Verizon is at a “critical juncture” and must “redefine its trajectory” by rebuilding market share and enhancing financial performance. Verizon currently employs nearly 100,000 individuals. The layoffs—anticipated to commence as soon as next week—will primarily impact non-union employees. Positions protected by unions and most retail roles are expected to remain largely unaffected. However, the restructuring encompasses more than just job cuts. Verizon plans to transition approximately 180–200 company-owned stores into franchise-operated locations, a strategy aimed at reducing operating costs while preserving its retail footprint nationwide.
Schulman’s approach comes in response to three consecutive quarters of subscriber declines, heightened competition, and mounting pressure in both the wireless and home internet sectors. As competitors gained traction, Verizon struggled to keep pace, necessitating decisive action. The CEO has emphasized cost-cutting as a core component of Verizon’s turnaround. He has frequently articulated the need for the company to become “simpler, leaner, and scrappier,” with a strong focus on operational efficiency. In a recent address to the workforce, Schulman reinforced this commitment, stating that “cost reductions will be a way of life for us here” and underscoring the importance of increased discipline across all business units. The franchising of stores is expected to play a significant role in this transition.
By alleviating the financial burden of managing a vast network of company-owned retail outlets, Verizon hopes to regain flexibility while still connecting with customers across the nation. This model has gained popularity among retailers looking to sustain their presence without incurring substantial overhead costs. Alongside cost reductions, Schulman is advocating for an improved customer experience, more informed financial decisions, and a long-term plan to restore Verizon’s competitiveness. He has outlined priorities to “maximize our value propositions, reduce our cost to serve, and optimize our capital allocation” as part of a broader initiative to fortify the company’s future.
As Verizon gears up for this extensive transformation, employees and industry observers are preparing for a pivotal period ahead—one that could redefine the company’s direction for years to come.
