Virgin Media O2 to cut thousands of jobs in major cost-saving drive

Virgin Media O2, jointly owned by Liberty Global and Telefónica, is set to cut thousands of jobs as part of a major cost-saving drive. The company is facing a tough economic climate and a shrinking broadband market, and is also grappling with a debt of £22bn. The layoffs, which are expected to be a majority of non-customer facing roles, will reduce labour costs by 30% and save £300m by 2029.

Virgin Media O2 has not disclosed the exact number of affected employees, but reports suggest it could be around 25% of its 16,000-strong workforce. The restructuring costs are estimated at £250m, which the company aims to repay within a year. These job cuts are part of a broader strategic overhaul across Virgin Media O2's units, including its fixed and mobile networks.

The company expects to save approximately £800m by 2029, with around £400m delivered in 2027. Virgin Media O2 is creating a "leaner, simpler organization", concentrating resources and investment on fewer, larger opportunities, and increasing its use of AI tools to support faster decision-making and delivery. The company's CEO, Lutz Schüler, emphasized that these changes are necessary due to the macro-economic climate, intense competition, and shrinking broadband market, as well as rapid technological advancements.

Virgin Media O2 plans to halt further fibre upgrades beyond its existing commitments, citing market economics. A Financial Times report suggests the company is close to a deal to use BT's fibre broadband network to host new customers.