Verizon has announced a sweeping restructuring programme that will see thousands of jobs affected and hundreds of company-owned retail stores transferred to franchise operators, as the US telecommunications giant accelerates efforts to reduce costs and strengthen its competitive position in an increasingly challenging wireless market.
According to Reuters, the company plans to sell 274 company-owned retail stores while eliminating around 500 corporate positions. The restructuring will affect approximately 3,000 retail and corporate employees in total, making it one of Verizon’s most significant organisational changes since embarking on a broader cost-cutting strategy under chief executive Dan Schulman.
The Wall Street Journal reported that the majority of the affected employees will come from the retail business, as the transfer of stores to franchise operators accounts for most of the workforce changes. Once the restructuring is completed, Verizon will continue to own roughly 1,000 retail stores across the United States, while franchisees will operate a much larger share of its retail footprint.
According to Barron’s, the latest measures form part of a wider turnaround plan introduced by Schulman after taking over as chief executive in October. The publication reported that the restructuring is intended to deliver billions of dollars in operating savings, allowing Verizon to reinvest in customer services, technology and new products as competition intensifies across the US telecoms sector.
Reuters reported that Verizon has already implemented several rounds of workforce reductions over the past year. Earlier this year, the company eliminated several hundred jobs, following a much larger restructuring announced in late 2025 that involved more than 13,000 positions. The latest changes continue that programme as executives seek to simplify the organisation while lowering operating expenses.
The Wall Street Journal said Verizon employed around 89,900 full-time workers at the end of 2025, meaning the latest restructuring represents another notable reduction in its workforce. The newspaper added that the company views the changes as part of a three-year strategic plan designed to improve efficiency while adapting its retail business to changing consumer behaviour.
According to Reuters, Verizon believes transferring stores to franchise operators has already produced positive results. The company said around 70% of employees working in stores sold during previous restructuring efforts found jobs with the new franchise owners. Executives also said Verizon will continue working closely with franchise partners, who already operate around 5,000 stores, to improve customer service and maintain a consistent retail experience.
Barron’s reported that Schulman has made cost discipline one of the central priorities of his leadership. Alongside reducing operating expenses, the company has increased its use of artificial intelligence to improve internal processes and customer support while introducing simplified pricing plans designed to attract and retain subscribers in a saturated wireless market.
Competition remains intense as Verizon continues to battle rivals AT&T and T-Mobile for customers. According to Reuters, the company has recently focused on strengthening its value proposition through simplified wireless plans, the removal of certain customer fees and the introduction of a new loyalty programme aimed at improving customer retention. These initiatives are intended to reverse slowing subscriber growth and improve customer satisfaction.
The Wall Street Journal reported that the retail restructuring reflects broader changes in consumer shopping habits, with more customers purchasing devices online or through franchise locations rather than traditional company-operated stores. Verizon believes concentrating its directly owned retail network while expanding franchise partnerships will create a more flexible and efficient operating model without reducing its national presence.
According to Barron’s, the company is also investing heavily in technologies that can support long-term growth. Artificial intelligence is expected to play an increasingly important role in customer service, network management and operational efficiency, helping Verizon lower costs while improving the customer experience. The company has also completed its acquisition of Frontier Communications, further expanding its fibre broadband business and creating additional opportunities for future growth.
Reuters reported that Verizon recently joined AT&T and T-Mobile in a joint venture designed to expand rural wireless coverage through satellite technology, demonstrating that while the company is reducing costs in some areas, it continues investing in network development and new technologies to remain competitive.
Industry analysts believe the restructuring reflects wider pressures affecting the US telecommunications sector. Slowing subscriber growth, high infrastructure investment costs and fierce competition have forced major carriers to examine their cost bases while searching for new ways to improve profitability. Verizon’s latest announcement suggests management believes a leaner organisation will provide greater financial flexibility to invest in network upgrades, fibre expansion and digital services.
While the restructuring will result in job losses and significant changes to Verizon’s retail operations, company executives argue the programme is designed to strengthen the business over the long term. By reducing operating costs, expanding franchise partnerships and increasing investment in technology and customer-focused services, Verizon hopes to improve its competitive position in an industry that continues to evolve rapidly.
As reported by Reuters, The Wall Street Journal and Barron’s, the restructuring represents another major step in Verizon’s transformation strategy under Dan Schulman. Although the immediate impact will be felt by thousands of employees and hundreds of retail locations, the company believes the changes will create a more efficient business better equipped to compete in the next phase of the US telecommunications market.