Verizon Targets $5B in Savings with 17K Layoffs, Q2 Revenue Seen at $35.1B
VZ is trading near its 52-week low of $38.39 (14% above the low).
Summary
Verizon is accelerating cost cuts, now targeting ~$5 billion in savings this fiscal year through ~17,000 job cuts and store sales. This follows a July 16 report of 3,000 layoffs, indicating the program is far larger than initially disclosed. The company also provided Q2 guidance of ~$35.11 billion in revenue and ~$1.27 EPS, modest year-over-year growth. The scale of the restructuring suggests management sees significant inefficiencies, but the market will weigh the savings against potential revenue disruption. The stock trades at 8.8x forward earnings, reflecting skepticism about growth. Watch for the official Q2 report to confirm these figures and any further restructuring details.
At the time of this announcement, VZ was trading at $43.86 on NYSE in the Trade & Services sector, with a market capitalization of approximately $183B. The 52-week trading range was $38.39 to $51.68. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Wiseek News.