Dan Schulman’s Turnaround Strategy for Verizon
CEO Dan Schulman aims to dismantle Verizon's bureaucracy and restore its competitive edge.
1Leadership Transition and Challenges
Dan Schulman assumed the CEO role at Verizon in October 2025 after serving on the board. He inherited a company losing market share to rivals like T-Mobile and AT&T. Facing a bloated bureaucracy that required 35 signatures for simple decisions, Schulman initiated significant layoffs, cutting approximately 13,000 jobs to signal urgent change.
2Subscriber Growth and Market Position
Verizon’s consumer business struggled significantly in 2025, losing 414,000 postpaid phone lines in the first three quarters. However, the company showed early signs of recovery by the third quarter, gaining 406,000 net phone lines. This performance marked the strongest third-quarter result in five years, despite a 41% reduction in promotional spending.
3Dismantling Corporate Bureaucracy
Schulman is aggressively targeting internal inertia by forcing executives to set more ambitious goals rather than hitting easy targets. He challenges managers who suggest taking discussions offline, demanding immediate accountability in meetings. This cultural shift aims to replace a long-standing playbook that prioritized network infrastructure over evolving customer needs and experiences.
4Shifting Pricing and Customer Strategy
Verizon is moving away from a costly cycle of raising prices and then using heavy promotions to win back defecting customers. The company introduced the Simplicity offering, lowering the starting monthly price for a single line to $30. These incentives aim to bundle mobile service with Fios home internet to reduce churn.
5The Competitive Threat of SpaceX
SpaceX’s $8 billion investment in low-band cellular spectrum licenses poses a potential long-term threat to traditional carriers. Schulman estimates that building a rival network would require four to six years and roughly $300 billion. He remains confident that Verizon can compete effectively once SpaceX enters the market with a functional network.
6Leveraging AI for Operational Efficiency
Verizon is integrating AI to support its infrastructure and internal operations. The company has signed multi-billion dollar agreements with Google and Amazon Web Services to provide high-capacity fiber networks for data centers. Internally, AI tools have already reduced the in-store phone buying process by approximately six minutes for customer service employees.
7Historical Context of Network Dominance
For years, Verizon relied on its reputation for network reliability, famously marketed through the 'Can you hear me now?' campaign. As network coverage became a baseline expectation rather than a differentiator, the company struggled to monetize its premium status. Competitors narrowed the quality gap, forcing Verizon to pivot toward better customer experiences.
8Future Outlook and Strategic Goals
Schulman views the current turnaround as an effort to turn an ocean liner at the speed of a race car. By prioritizing customer trust over short-term revenue, he aims to modernize a company that had stagnated for five years. Success depends on maintaining intensity while navigating the rapid technological shifts reshaping the industry.
Original article: Fortune | FORTUNE — Dan Schulman’s Turnaround Strategy for Verizon