Verizon Communications to Slash 15,000 Jobs

Verizon’s layoffs are set to happen in the next week, according to The Wall Street Journal. (Courtesy Verizon)

Key Points

• Verizon Communications plans to cut approximately 15,000 jobs, primarily through layoffs, according to a report.
• The company intends to convert around 200 stores into franchised locations, moving those employees off its payroll.
• New CEO Daniel Schulman, who started in early October, made cost reduction a priority for Verizon.

Verizon Communications is planning to cut around 15,000 jobs as the telecom’s new CEO delivers on his pledge to slash costs.

The head count reduction amounts to about 15% of the company’s staff, as Verizon had just under 100,000 employees at the end of 2024, according to FactSet data. Employees who are affected will find out their status in the next week.

The bulk of Verizon’s job cuts will be in the form of layoffs, though the company also plans to turn roughly 200 stores into franchised locations, which would move those workers off its payroll.

Verizon shares were up 0.75% at close on Thursday. Shares are up nearly 3% this year, while the S&P 500 has gained 18%.

Verizon, the largest U.S. telecom operator by subscriber base, has been fighting for subscribers. The firm’s board appointed Daniel Schulman, the former PayPal and Virgin Mobile USA chief executive, as CEO in early October. Schulman, in a call discussing earnings on Oct. 29, said that Verizon needs to “invest to be the best in the marketplace” and “we’re fully committed to covering all of those investments through cost reductions.”

BNP Paribas analyst Sam McHugh wrote in a note on Thursday that these layoffs—which he says would be the largest in the company’s history—are “no big surprise,” following the recent change of CEO.

When Verizon announced Schulman as the new CEO, it said the company would focus on maximizing value propositions, reducing costs, and delivering sustainable long-term growth for shareholders.

This executive change rattled the telecommunications industry as Wall Street has been looking for changes at Verizon that would make the company more competitive. The higher-priced carrier has been challenged by rising competition from peers and inflation that is constraining consumers.

BNP’s McHugh thinks the job cuts will enable Verizon to stabilize the business and grow earnings.

Write to Karishma Vanjani at karishma.vanjani@dowjones.com, Nate Wolf at nate.wolf@barrons.com and Angela Palumbo at angela.palumbo@dowjones.com