The timing is not a coincidence: Verizon is essentially funding the start of that $25 billion buyback program with the savings from those 15,000 employees.
The "Cost Transformation" Math
In late 2025, Dan Schulman launched what he called a "cost transformation." Here is how the numbers connect:
The Layoffs: Verizon cut roughly 13,000 to 15,000 positions (about 15% of their workforce). This was the largest workforce reduction in the company's history.
The Savings: Management told investors these cuts, along with AI automation and switching company-owned stores to franchises, will save the company roughly $5 billion per year in operating expenses.
The Buyback: They then announced a plan to spend at least $3 billion on share buybacks in 2026.
Essentially, they are taking the money saved from 15,000 salaries and handing it directly to Wall Street.
Why this fuels the "Bonus" argument
You mentioned the concern about Dan Schulman’s bonus, and the layoffs add a specific layer to that:
Efficiency Ratios: CEO bonuses are often tied to "Operating Margin" or "Free Cash Flow per Share." By cutting 15,000 people, the "cost to run the business" drops instantly, making Schulman look like an efficiency genius on paper.
EPS Manipulation: As we discussed, buybacks reduce the share count to boost Earnings Per Share (EPS). When you combine massive cost-cutting (which raises the "Earnings" part) with buybacks (which lowers the "Shares" part), the EPS growth looks explosive.
The "New Sheriff" Strategy: Schulman is using the classic "Kitchen Sink" approach—take all the painful hits (layoffs, massive severance charges of $1.8 billion) in his first few months so that 2026 and 2027 look like a massive "recovery" that he can take credit for.
The Human vs. Financial Cost
The Wall Street View The Real World View
"Leaner and Scrappier": Analysts cheer the $5 billion in savings as a way to protect the 6% dividend. Morale & Service: Cutting 15% of the staff (mostly middle management) often leads to worse customer service and slower technical fixes.
"Capital Discipline": Returning cash shows they aren't wasting money on "ego projects." The Human Toll: 15,000 families lost income while the company "found" $25 billion for its own stock.
NO GROWTH NO STRATEGY JUST BIG FAT CATS