Verizon Plans Major Layoffs as New CEO Implements Turnaround Strategy
Verizon Communications, America’s largest telecom company, is preparing to announce thousands of job cuts as early as next week as new CEO Dan Schulman implements an aggressive turnaround plan.
Key Takeaways
- Verizon may cut 10,000-15,000 positions from its 100,000 workforce
- Layoffs would spare unionized employees and some retail staff
- Company plans to convert 200 company stores to franchises
- New CEO Dan Schulman aims to reverse subscriber losses
Massive Workforce Reduction Planned
According to Bloomberg sources, Verizon is considering eliminating 10,000 to 15,000 positions in what would be one of the most significant moves yet in Schulman’s new strategy. The company had just under 100,000 employees at the end of 2024.
The planned layoffs would primarily affect non-unionized workers, with unionized employees and those at select retail outlets being spared from the cuts.
Store Conversion Strategy
In a separate restructuring move, Verizon is preparing to convert approximately 200 company-owned stores into franchises, according to Wall Street Journal reports. This shift represents another aspect of the company’s cost-cutting initiatives.
Leadership Change Amid Declining Performance
Schulman, the former PayPal Holdings CEO, replaced Hans Vestberg last month following Verizon’s consecutive quarters of subscriber declines and underperformance compared to rivals. The company recently reported its third straight quarter of mobile subscriber losses.
Schulman’s Strategic Vision
Upon taking leadership, Schulman committed to “aggressively transform our culture, our cost structure, and the financial profile of Verizon in order to put our customers first, compete effectively, and deliver sustainable returns for our shareholders.”
The new CEO emphasized that Verizon requires “cost transformation, fundamentally restructuring our expense base” and aims to create “a simpler, leaner and scrappier business.”
Notably, Schulman has stated he opposes price increases as a growth strategy, explaining: “Our financial growth has relied too heavily on price increases. A strategic approach that relies too much on price without subscriber growth is not a sustainable strategy.”
Having served on Verizon’s board for seven years, Schulman seeks to refocus the company on customer-centric approaches rather than hiking prices to drive revenue.
