Verizon announced on Thursday it will sell 274 company-owned retail locations and cut about 500 corporate jobs as part of its ongoing restructuring, marking the third major wave of workforce reductions under CEO Dan Schulman.
The moves will impact about 3,000 retail and corporate employees in total, according to Reuters. After the sale takes effect on August 16, Verizon will own 1,000 stores, down from its current portfolio. The company said the 274 locations will transition to authorized retailers but remain open to customers.
This announcement follows Verizon’s largest single layoff in November 2025, when the company cut more than 13,000 jobs—roughly 13% of its non-union workforce—under Schulman’s restructuring plan. In May 2026, Verizon eliminated several hundred more positions. The pattern reflects Schulman’s aggressive cost-reduction strategy since taking over as CEO.
Verizon is targeting $5 billion in operating expense savings in 2026, according to People Matters and other sources. Schulman previously said a substantial portion of these savings would come through workforce reductions and operational efficiency gains. The company also plans an additional $1 billion in annual cost reductions beyond 2026.
The retail store transition represents a shift in Verizon’s business model, moving away from directly operating hundreds of locations toward a franchised or authorized-retailer model. This approach allows the company to reduce fixed costs and management overhead while maintaining customer access to Verizon services. The stores affected by the sale will continue to serve customers, though they will operate under new ownership.
Schulman, who joined Verizon from PayPal, has emphasized that the company must evolve to address competitive pressures and customer churn. Verizon has faced challenges retaining customers amid pricing increases in recent years, and the CEO has signaled that cost transformation and AI automation will be central to the company’s turnaround strategy going forward.
Sources
- Reuters — Reported Verizon’s announcement of 274 store sales and 500 corporate job cuts on July 16, 2026, total impact of 3,000 employees, and post-sale store count of 1,000.
- People Matters — Confirmed Verizon’s $5 billion operating expense savings target for 2026 and Schulman’s cost-cutting strategy.
- CNBC — Reported November 2025 announcement of 13,000+ job cuts as Verizon’s largest single layoff.
- Fierce Wireless — Confirmed that sold stores will remain open under authorized retailers.
- The Street — Reported the $5 billion expense savings target and AI automation as part of the restructuring plan.
