VZ Stock Rises — Verizon Moves To Slash Costs With Major Store Shakeup

• The move is part of CEO Dan Schulman’s broader strategy to streamline operations and reduce costs.
• The retail changes will become effective on August 16 and leave the company with 1,000 company-owned stores, according to Bloomberg.
• Verizon is scheduled to report second-quarter earnings on July 24.

Verizon Communications is reportedly eliminating about 3,000 positions at its corporate-owned retail stores by transitioning 274 locations to independent ownership.

Affected employees will no longer be on Verizon’s payroll, Bloomberg reported. However, the employees could be retained by new owners, a spokesperson told the news platform.

The move is part of CEO Dan Schulman’s broader strategy to streamline operations and reduce costs. Shares of the company rose 3% at the time of writing.

Retail Store Restructuring

The changes affect only corporate-owned stores. Verizon is converting these locations to independent (franchise-style) operations rather than closing them outright. This approach allows the company to maintain its retail footprint while removing the stores and their employees from its direct cost structure.

The retail changes will become effective on August 16 and leave the company with 1,000 company-owned stores and another 5,000 independent franchise Verizon stores, according to Bloomberg.

The store-level changes mark the latest step in Schulman’s plan to cut around $5 billion in operating expenses in 2026. It follows Verizon’s largest-ever layoff round of more than 13,000 jobs in November 2025 and several hundred additional cuts in May.

Verizon is scheduled to report second-quarter earnings on July 24. The company is expected to report earnings of $1.27 per share with a revenue of $35.07 billion, according to data from Fiscal AI.

Expert Reaction To Layoffs

John Sinclair, Head of Consulting & Transformation Delivery, Americas at Bosch USA, criticized Verizon’s strategy earlier this week, stating that it lacks a compelling growth narrative and meaningful differentiation.

"Verizon was once a pillar of American innovation. Today it reflects strategic drift and a failure to lead," Sinclair wrote, adding that CEO Dan Schulman appears to be relying on “the oldest and weakest playbook” of workforce reductions to support near-term stock performance rather than pursuing sustainable growth initiatives.

How Did VZ Retail Traders React?

On Stocktwits, retail sentiment around VZ stock stayed within the ‘bearish’ territory over the past 24 hours, while message volume stayed at ‘low’ levels.

A Stocktwits user highlighted increasing competition to Verizon from SpaceX’s Starlink.

Another voiced hopes for "good earnings."

According to data from Koyfin, 11 of the 26 analysts covering VZ rate it ‘Buy’ or ‘Strong Buy,’ while 15 rate it ‘Hold.’ The 12-month average price target on the stock is $51.25, representing a potential upside of 20% from the stock’s last close.

Earlier this week, Scotiabank analyst Maher Yaghi lowered the firm's price target on Verizon to $51.50 from $54.50 and kept an ‘Outperform’ rating on the shares to incorporate investor trepidation due to increased satellite competition. The firm, however, continues to favor Verizon.

Bernstein also lowered the firm's price target on Verizon to $44 from $49 and keeps a Market Perform rating on the shares, noting SpaceX’s Starlink as a new addition in an already competitive broadband market. Scotiabank and Bernstein's new price targets represent a potential upside of 20% and 3%, respectively, from the stock's last closing price. 

VZ stock has gained 8% year-to-date.

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