TLDR
- Verizon stock rose 2.45% on Thursday, outpacing the S&P 500’s 0.4% gain
- The company is selling 274 corporate-owned stores to franchise operators, effective Aug. 16
- Around 3,000 employees will be affected — 2,500 retail and 500 corporate workers
- CEO Daniel Schulman is targeting $5 billion in operating expense savings for 2026
- After the transition, Verizon will directly operate only about 1,000 stores
Verizon (VZ) stock climbed 2.45% on Thursday after the company announced it was selling 274 corporate-owned stores and cutting roughly 3,000 jobs. The S&P 500 gained just 0.4% on the same day.
Verizon Communications Inc., VZ
The stock closed at $43.88, up $1.05 on the session. The day’s range ran from $42.89 to $44.22.
Verizon will lay off 2,500 retail workers and 500 corporate employees. The store sales are to third-party franchise operators, with the transition effective Aug. 16.
The 3,000 affected workers represent about 3.3% of Verizon’s total workforce of 89,900 at end of 2025. Many retail workers are expected to be retained by the incoming franchise operators.
Once the store sales are complete, Verizon will directly run only around 1,000 outlets. Currently, roughly 5,000 of its stores already operate under franchise agreements.
This is the company’s second round of layoffs in 2026. In November last year, Verizon cut 13,000 jobs — its largest-ever layoff. A smaller round followed in May 2026.
Schulman’s Cost-Cutting Push
CEO Daniel Schulman, who took over last October, has made cost reduction the central focus of his tenure. During a January earnings call, he said Verizon was targeting $5 billion in operating expense savings for 2026, with a “substantial portion” coming from headcount cuts.
The company is also merging its Customer Success and Consumer Sales Organization Operations teams. Going forward, its structure will be organized around three pillars: Mobile, Home, and Value brands.
Verizon said the reduction in company-owned stores will free up resources to invest in premium in-store experiences. It also continues to sell products through big-box retailers like Costco and Best Buy.
What Else Is Changing
Beyond layoffs and store sales, Verizon has also launched a simplified service plan for customers and a refreshed loyalty program as part of the broader restructuring effort.
Capital expenditure for 2026 is planned in the range of $16 billion to $16.5 billion — a step down from recent years.
Verizon is scheduled to report second-quarter earnings on July 24.
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