Verizon Communications Inc. is set to announce additional layoffs, continuing its trend of workforce reductions aimed at achieving significant cost savings. This latest round of job cuts is anticipated to be disclosed on Thursday morning, though the exact number of positions affected remains unclear. As of Tuesday, shares of Verizon closed at $42.28, reflecting a slight decline of 0.9%.

CEO Daniel Schulman, who has led the company since October 2025, is focused on reducing operational expenses by $5 billion by the end of 2026. This strategy follows a major workforce reduction in November 2025, during which Verizon eliminated 13,000 jobs. The company’s total workforce currently stands at approximately 89,900 employees, and Schulman has indicated that ongoing job cuts are a critical component of their cost-saving measures.

Analysts Respond to Job Cuts

In light of the recent announcements, analysts have begun adjusting their forecasts for Verizon's stock. Notably, BNP Paribas Exane reduced its price target from $46 to $44, maintaining a neutral stance. This adjustment signifies an expected upside of around 4% from current levels. Despite this downgrade, the broader Wall Street consensus remains cautious with an average price target of $50.28, supported by nine analysts recommending a Buy rating.

Recent earnings reports show that Verizon's performance slightly exceeded expectations with earnings per share of $1.28, surpassing the Wall Street consensus of $1.21. However, revenue figures fell short, recording $34.44 billion against an analyst projection of $34.82 billion. Despite these mixed results, Verizon gained 55,000 postpaid phone subscribers in the first quarter, outperforming market forecasts.

Ongoing Challenges for Verizon

Schulman has been transparent about the challenges facing Verizon, acknowledging that customer satisfaction has not met expectations and that the company has experienced erosion in market share over the past five years. The need for cost-cutting measures reflects a significant shift in the company's approach to staying competitive. As more details about the upcoming layoffs are revealed, the market will be watching closely to see how these changes impact Verizon's operations and stock performance.

This material is for informational purposes only and should not be considered financial advice.