Verizon Announces 15,000 Job Cuts in Historic Restructuring Under New CEO

This analysis is based on the Wall Street Journal report [4] published on November 13, 2025, which revealed Verizon Communications Inc.'s plans to eliminate approximately 15,000 jobs, representing about 15% of its workforce, in what would be the largest layoff round in the company’s history. The restructuring initiative, led by newly appointed CEO Dan Schulman who took over in early October 2025, targets primarily non-union management positions with reductions exceeding 20% in those roles [4].

The announcement comes as Verizon faces intensifying competitive pressures across both wireless and home internet markets. The company added only 44,000 monthly bill-paying wireless subscribers in Q3 2025, significantly lagging behind competitors like T-Mobile (over 1 million net additions) and AT&T [4]. Cable operators such as Comcast and Charter are disrupting the wireless market by bundling mobile plans with high-speed internet services, while traditional rivals have intensified promotional activities around iPhone launches with aggressive discounts and trade-in deals [4].

Market reaction to the announcement was modestly positive, with Verizon’s shares rising approximately 1.5% [4]. However, the stock has largely stagnated over the past three years, gaining only 8% compared to the S&P 500’s nearly 70% rise during the same period [4]. Current market data shows Verizon trading at $40.99 with a year-to-date performance of +1.95% [0].

CEO Dan Schulman, formerly of PayPal, has acknowledged fundamental strategic issues, stating that “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” [4]. This represents a significant admission that Verizon’s premium pricing strategy is no longer viable in the current competitive landscape.

Despite the challenges, Verizon maintains strong financial fundamentals with a market cap of $172.85B, P/E ratio of 8.74x, ROE of 19.44%, and an attractive dividend yield of 6.71% following a September hike [0]. The company has made substantial investments in recent years, including $52 billion for 5G spectrum in 2021, $20 billion for Frontier Communications, and $6 billion for TracFone Wireless [4], though some analysts question whether these assets were overvalued.

The plan to convert approximately 180-200 corporate-owned retail stores into franchised operations [4][2] represents a significant shift in Verizon’s distribution strategy, potentially reducing fixed costs while maintaining market presence through franchise partners.

• Execution Risk
  : Implementing layoffs affecting 15,000 employees carries significant operational and reputational risks, with potential impacts on company culture and innovation capacity
• Customer Service Impact
  : Reduced workforce could potentially affect customer service quality during the transition period
• Competitive Escalation
  : Rivals may respond with their own cost-cutting measures or intensified promotional strategies
• Revenue Pressure
  : If customer retention strategies fail to offset competitive pressures, revenue growth may continue to lag

• Cost Structure Optimization
  : The restructuring could significantly improve operating efficiency and free cash flow generation
• Strategic Repositioning
  : Under new leadership, Verizon has an opportunity to redefine its competitive strategy beyond premium pricing
• Margin Improvement
  : Successful implementation could lead to improved operating margins and enhanced shareholder returns

1. Subscriber Growth Trends
   : Q4 2025 and Q1 2026 subscriber numbers will be crucial indicators of strategy effectiveness
2. Margin Evolution
   : Operating margins and free cash flow trends will reveal whether cost cuts translate to improved profitability
3. Competitive Dynamics
   : Pricing moves and promotional activities from AT&T and T-Mobile
4. Management Execution
   : Quarterly commentary on restructuring progress and strategic adjustments

The restructuring announcement reflects Verizon’s response to sustained competitive pressures and weak subscriber growth performance. While the cost-cutting measures received initial market approval, the long-term success will depend on the company’s ability to reverse subscriber losses without relying on price increases, as acknowledged by CEO Schulman [4]. The transformation represents a critical juncture for Verizon as it seeks to reposition itself in an increasingly competitive telecommunications landscape.

The company maintains strong financial metrics with attractive dividend yields and reasonable valuation multiples [0], but faces significant execution risks in implementing such a large-scale workforce reduction. The effectiveness of this strategic pivot will become evident in the coming quarters through subscriber growth trends, margin performance, and competitive dynamics in the wireless and home internet markets.