Virgin Media O2 targets £800 mn savings through major job cuts
AgenciesBritish telecoms group Virgin Media O2 said Tuesday that it would cut thousands of jobs in a sweeping cost-saving program, helped by greater use of AI, to reduce its debt p...
British telecoms group Virgin Media O2 announced plans on Tuesday to cut thousands of jobs as part of a cost-saving program, driven by increased use of artificial intelligence. The move aims to reduce the company's debt burden and save around £300 million in staff expenses by 2029, as part of a broader strategy to slash costs by £800 million annually.
Virgin Media O2, which employs 16,000 people, did not disclose the exact number of job cuts but confirmed that the majority of job losses will occur over the next two years through head office restructuring, including reductions in senior leadership roles. CEO Lutz Schuler emphasized that while these decisions are difficult, they are necessary for the company's future success and growth.
The company expects AI tools and digital channels to enhance efficiency, productivity, and customer experience, having recently launched a voice AI agent to handle broadband fault calls. Virgin Media O2 is under investor pressure to address its substantial debt of over £22 billion. The job cuts were disclosed alongside the group's third-quarter earnings, which showed a 5.7% decline in revenue to £2.4 billion, though the company returned to a net profit of £1.5 million and lost more than 23,000 customers across its internet and phone services.
To achieve cost savings, Virgin Media O2 will suspend the rollout of its fiber network upgrades beyond existing commitments.
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