Verizon Sells 274 Stores, Cuts 500

Verizon is making big moves to cut costs without sacrificing its ambitious network investments. The company is selling 274 of its own stores to authorized retailers and eliminating about 500 corporate jobs, impacting around 3,000 employees nationwide. The goal: protect its dividend, fund $16–$16.5 billion in annual network spending, and digest the $20 billion Frontier Communications acquisition — all ahead of crucial Q2 results on July 24. But the store selloff shifts customer care to outside partners, raising questions about whether service quality (and Verizon’s premium brand) can hold up as the company leans harder on commission-driven models.

Here’s the catch: more stores run by third-party operators means less control over the customer experience, even as Verizon simplifies its phone plans and axes activation fees. The company hopes savings from these moves will show up in lower operating expenses, but with T-Mobile ramping up promos and AT&T pushing on fiber, Verizon can’t afford to slip. Meanwhile, a major executive shakeup at Zayo — a key backhaul provider for carriers — puts former Verizon exec Sowmyanarayan Sampath at the helm, potentially giving Zayo more pricing muscle just as Verizon needs to keep costs down.

Based on reporting from Fierce Network, Broadband Breakfast, and Total Telecom.

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