New Verizon CEO Dan Schulman, Former PayPal Chief, Announces 20% Workforce Reduction Amid Challenges

New Verizon CEO Dan Schulman, former PayPal chief, is set to oversee the largest workforce reduction in the company's history, with 15,000 jobs to be cut. This comes just weeks after he assumed the role, amid ongoing subscriber losses and mounting investor pressure, highlighting the challenges facing the telecom giant.

The layoffs, representing approximately 15% of Verizon's total workforce and over 20% of its non-union management ranks, are expected to begin as early as next week. This drastic measure underscores the company's urgent need to curb costs and stabilise its declining financial performance.

The Board Member Who Became the Cost-Cutter

The timing raises uncomfortable questions about corporate governance and accountability. Schulman joined Verizon's board in September 2018 and served as Lead Independent Director from December 2024 until his appointment as chief executive on October 6, 2025.

During his seven-year tenure as a director, Verizon's board unanimously approved a staggering $52 billion (£41 billion) in expenditures. These included a $41 billion C-Band spectrum purchase in March 2021, a $20 billion (£15.7 billion) Frontier Communications acquisition announced in September 2024, and a $6 billion (£4.7 billion) TracFone Wireless deal.

The company also eliminated nearly 20,000 positions over the preceding three years under former CEO Hans Vestberg—decisions Schulman would have overseen as a board member.

Paying for Past Decisions

Industry analysts have drawn a direct line between the spending sprees and the impending redundancies. Craig Moffett, senior analyst at MoffettNathanson, noted that Schulman's primary focus was on halting subscriber losses by subsidizing expensive handsets.

'The obvious question was how Verizon planned to pay for that, and now we know,' Moffett said, questioning whether cost reductions would offset higher customer retention expenses.

Verizon's shares have stagnated dramatically, gaining merely 8% over the past three years compared with the S&P 500's nearly 70% surge. The company added just 44,000 monthly bill-paying wireless subscribers in the third quarter, trailing rival AT&T significantly.

A Telecommunications Veteran's Gamble

Schulman brings considerable telecommunications experience to the crisis, having spent 18 years at AT&T early in his career and founding Virgin Mobile USA in 2001. At PayPal, he tripled revenue from $8 billion to $30 billion over nearly a decade.

In an October earnings call, Schulman acknowledged the company's strategic failures. 'Our financial growth has relied too heavily on price increases; a strategy that relies too much on price without subscriber growth is not sustainable,' he told investors.

The restructuring extends beyond redundancies. Verizon plans to convert approximately 180 corporate-owned retail locations into franchised operations, further reducing payroll obligations while maintaining market presence.

Market Realities Force Drastic Action

Verizon maintains the highest price points among major US carriers—a strategy analysts describe as increasingly untenable amid intensifying competition from AT&T and T-Mobile. Both rivals have deployed aggressive promotional campaigns, especially around new iPhone launches, offering substantial trade-in deals and discounts.

Schulman pledged to transform Verizon into 'a simpler, leaner and scrappier business' during the October call. He rejected suggestions that prioritizing customer satisfaction would erode profit margins, arguing the industry has 'only scratched the surface of increased bottom line performance.'

The redundancies arrive as Verizon prepares to integrate Frontier Communications, a transaction expected to close in the first quarter of 2026 pending regulatory approval. The Federal Communications Commission approved the merger in May 2025 after Verizon agreed to end its diversity, equity, and inclusion policies.

For the 15,000 workers facing redundancy, the corporate restructuring serves as a stark reminder that strategic missteps at the board level ultimately manifest as devastating personal consequences for employees who had no voice in those decisions.