Verizon Communications Inc. is preparing for another round of layoffs that will be disclosed on Thursday. This decision directly follows CEO Daniel Schulman’s ongoing strategy to cut operational costs by $5 billion by 2026.

Details on Layoffs and Financial Strategy

The exact number of positions affected by the impending layoffs has not been made public, but they come on the heels of last year’s record cuts when the company eliminated 13,000 jobs. Another smaller round of layoffs took place in May 2026, resulting in a workforce of 89,900.

During a recent earnings call, Schulman emphasized the need for the company to invest in its customer value proposition, signaling that continuous workforce reductions might be necessary to stay financially viable. He remarked, “If we don’t have enough money to put back into our value proposition to customers, we are going to continue to shrink.” Additionally, he acknowledged that customer satisfaction levels were lower than desired and that Verizon has suffered a decline in market share.

Analyst Ratings and Market Response

On the same day, BNP Paribas Exane reduced its price target for Verizon’s stock from $46 to $44 while maintaining a neutral stance. Following this news, VZ stock decreased by 0.9% to $42.28 but has seen a total return increase of approximately 9% this year, though it still lags behind the S&P 500's 10.5%.

The analyst landscape for Verizon shows a mixed outlook: nine analysts classify it as a Buy, while twelve deem it a Hold. The average consensus price target is currently $50.28. Citigroup remains the most optimistic, having raised its target to $55 earlier this year.

Recent Financial Performance and Future Plans

Verizon’s latest quarterly earnings revealed earnings per share (EPS) of $1.28, surpassing the $1.21 consensus expectation. However, the company’s revenue of $34.44 billion fell slightly short of analysts' predictions of $34.82 billion. Looking forward, Verizon has issued EPS guidance for the full year 2026, estimating between $4.95 and $4.99 per share.

In the first quarter, the company reported a net addition of 55,000 postpaid phone connections, exceeding market expectations. Earlier this year, Verizon completed a significant acquisition, merging with Frontier Communications for $20 billion, which included conditions to protect some Frontier employees from layoffs for four years.

Investments are also being directed into technology; Verizon recently launched a new flat-rate “Simplicity plan” to streamline services, and is actively integrating AI to enhance customer service interactions.

This article is for informational purposes only and is not financial advice.