Telefónica applies AI on a massive scale to reinvent its German subsidiary O2
It seeks a more agile, profitable organization prepared to take advantage of organic growth opportunities, especially in Companies and the wholesale business, but without ruling out purchases.
Telefónica has initiated a restructuring and reinvention process for its German subsidiary, O2, under the leadership of new CEO Santiago Argelich Hesse. O2 has faced challenges, including the loss of 1&1 as a client, which resulted in an estimated €500 million annual revenue loss, and has seen a 3.8% decline in 2025 and 9.8% in the first half of 2026.
The company is implementing a massive use of artificial intelligence to simplify processes and reduce costs, with 150 cases of use, and has agreed to a redundancy plan for 1,100 employees. O2 aims to grow organically, particularly in the enterprise and wholesale businesses, and may consider acquisitions, but a potential purchase of 1&1 is not currently on the agenda.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
