Virgin Media O2 Announces Thousands of Job Cuts in the UK
Operator aims to save 800 million pounds by 2029 following a decline in its customer base
Virgin Media O2 plans to reduce its workforce by 30% over the coming years. The move aims to save 800 million pounds by 2029 to address intense competition in the British telecommunications market.
The cuts will primarily affect administrative and operational departments. The company currently employs 15,000 workers and faces challenges due to the expansion of the fiber optic network owned by its competitor, BT.
Recent financial results revealed the loss of 23,300 phone and broadband subscribers in the third quarter. Total company revenue fell to 2.4 billion pounds during the period. Adjusted operating profit also declined to 995 million pounds.
The operator's expansion strategy suffered a setback after antitrust regulators blocked the acquisition of Netomnia. The company is now negotiating the use of the Openreach network infrastructure to extend its geographic reach.
CEO Lutz Schüler stated that the changes are necessary given the current regulatory and technological landscape. The company is seeking alternatives to maintain profitability in a sector marked by lower prices offered by rival providers.
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