Dan Schulman’s Reluctant Return to Lead Verizon’s Massive Turnaround
Former PayPal CEO exits retirement to overhaul Verizon’s bureaucratic culture and market position.
1Retirement Interrupted by Duty
Dan Schulman, former PayPal CEO, initially rejected multiple offers to lead Verizon while enjoying retirement on his Montana ranch. Despite his desire to avoid the grueling demands of a corporate executive role, he eventually accepted the position in October 2025. He felt a strong sense of obligation to address the company's declining performance.
2Identifying the Corporate Stagnation
Verizon had struggled for five years, losing its industry-leading market capitalization and reputation for network superiority. Schulman noted the company suffered from extreme bureaucracy, requiring up to 35 signatures for simple approvals. He viewed the firm as a lumbering giant that had fallen behind its competitors due to slow, risk-averse decision-making processes.
3Drastic Workforce Restructuring
Shortly after taking the helm, Schulman initiated the largest layoff in Verizon's history, cutting over 13,000 jobs in November 2025. He aimed to signal a serious departure from previous incremental cuts of 2,000 to 3,000 employees. This move was intended to free up capital for reinvestment and demonstrate his commitment to fundamental change.
4Shifting Focus to Customers
Schulman is actively dismantling Verizon's internal focus on network-only metrics to prioritize customer experience. He argues that while the network remains foundational, the company must stop hiding behind internal processes. His strategy involves fostering a culture willing to experiment and make faster decisions, moving away from the previous risk-averse corporate mindset.
5Early Financial Performance Gains
The turnaround strategy is yielding measurable results, with Verizon adding 406,000 net postpaid phone lines in the third quarter of 2026. This is a significant increase from the 44,000 lines added during the same period a year prior. Additionally, free cash flow rose 12% to reach $7.8 billion during this recent quarter.
6Ending Promotional Spending Habits
A key component of Schulman's strategy involves breaking the industry's reliance on aggressive promotional offers and free phones to acquire customers. He views these tactics as unsustainable, noting that promotional costs fell 41% under his new approach. He believes true growth comes from customer trust rather than temporary, expensive acquisition incentives.
7Long-term Commitment to Change
Schulman is currently one year into a three-year turnaround plan designed to revitalize the telecommunications giant. Recognizing the scale of the challenge, the company has extended his contract through December 2028. He remains focused on restoring internal pride and proving that the massive organization can successfully adapt to modern competitive pressures.
8Defining Future Success Metrics
When eventually handing over the reins, Schulman intends to judge his tenure based on restored customer trust and internal morale. He acknowledges that many observers had written off Verizon as too bureaucratic to change. By surprising critics with early positive results, he aims to leave the company in a stronger, more agile position.
Original article: Fortune — Dan Schulman’s Reluctant Return to Lead Verizon’s Massive Turnaround