Virgin Media O2 outlines plans to lay off thousands as revenue falls
Telco expects to deliver cost savings of £800M by 2029, with £300M coming from staff cuts
Virgin Media O2 (VMO2) is planning to lay off thousands of employees as its revenue continues to decline. The UK's second-largest telecoms provider aims to cut a third of its labor costs, which will result in redundancies equating to approximately 30% of the company's total people costs over the next two years. The company employs 16,000 people, and the majority of the redundancies will be from non-customer facing roles.
Management at VMO2 is also pulling back from investing in further fiber network upgrades beyond existing commitments, opting for a low-cost upgrade to its hybrid fiber-coaxial (HFC) network, which will deliver 2 Gbps services to the majority of the network by 2027. VMO2's revenue fell 5.7% year-on-year to £2.43 billion in Q3, ending September 30, with management attributing the decline to consumer fixed market pressures.
Analysts warn that the business is in serious trouble, with declining revenue and customer losses exposing the scale of the challenge.
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