Virgin Media O2 job cuts could save £200m but fail to ease debt crisis
Virgin Media O2’s plans to axe up to 4,000 jobs could save the telecoms giant around £200m a year, but may do little to ease its mounting debt burden. The broadband provider is preparing to cut as much as a quarter of its 16,000-strong workforce as it battles fierce competition, falling revenues and concerns over [...]
Virgin Media O2 is set to cut as many as 4,000 jobs in a bid to save around £200 million annually, but analysts warn the move may not significantly alleviate the company's mounting debt crisis. The restructuring, aimed at addressing fierce competition and falling revenues, is estimated to generate substantial personnel savings, but experts caution that a net leverage ratio of 5.5 times earnings in 2028 could persist, exceeding the company's target range of 4 to 5 times.
The restructuring involves non-customer-facing roles and senior management changes, with Virgin Media O2, co-owned by Liberty Global and Telefónica, also reviewing contractor and supplier usage as part of its cost-cutting efforts. The union representing some employees, Prospect, expressed disappointment, pledging to mitigate job losses and secure retraining opportunities.
Meanwhile, the company is reportedly close to a deal with BT to use the latter's fibre network, stemming from tensions in their market rivalry. Meanwhile, the Competition and Markets Authority has raised concerns over BT's acquisition of Netomnia, a fibre joint venture backed by Virgin Media O2's shareholders.
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- Thousands of jobs at Virgin Media O2 to be cut bbc.co.uk
