The cuts, the largest in Verizon’s history, are expected to begin within days and will fall heavily on non-union management, where more than a fifth of roles are set to disappear. As part of the shake-up, Verizon also plans to convert around 180–200 corporate-owned retail stores into franchised outlets, shifting those positions off its direct payroll.

The move comes just weeks after Schulman, the former PayPal chief and long-time Verizon board member, stepped into the CEO role. Internally, he has described the plan as a “cost transformation”, arguing that Verizon must “fundamentally restructure our expense base” to become a “simpler, leaner and scrappier business”.

Schulman inherits a company facing mounting pressure. Verizon added only 44,000 postpaid wireless subscribers in the most recent quarter, significantly trailing AT&T and T-Mobile, both of which continue to use aggressive pricing and bundling strategies to capture market share. Meanwhile, cable operators such as Comcast and Charter are expanding their mobile footprints, adding further competitive strain.

Rather than rely on further price increases, a tactic Verizon has used repeatedly in recent years, Schulman is pivoting towards operational efficiency and customer-focused investments. The job cuts are expected to unlock substantial savings, with analysts projecting up to $1 billion in gross annualised reductions from 2026.

However, the strategy is not without risk. Cutting such a large slice of management threatens to unsettle internal operations, disrupt leadership continuity, and potentially slow the execution of key programmes. The franchise shift, while reducing overheads, may also weaken Verizon’s control over retail customer experience at a time when churn remains a critical metric.

Verizon’s past strategy leaned heavily on investment-led expansion, including major spending on mid-band 5G spectrum and acquisitions such as TracFone. Schulman’s approach signals a notable shift: less emphasis on large-scale capex bets and more on structural efficiency, performance accountability and cost discipline.

Analysts say the overhaul is necessary but caution that cost-cutting alone will not fix Verizon’s momentum problem. The company must simultaneously improve customer retention, elevate its value proposition, and ensure its network leadership narrative remains credible as rivals accelerate 5G and fibre rollouts.

For Schulman, the job cuts are only the opening act of what is likely to be one of the most consequential turnarounds in Verizon’s history.

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