Virgin Media O2 to axe thousands of jobs in £800million cost-cutting drive

Virgin Media O2 currently employs approximately 16,000 people across the UK, although the company has not confirmed exactly how many roles will disappear.

The operator is facing fierce competition across the telecoms industry alongside a growing debt burden.

Senior leadership roles have already been reduced as part of the restructuring, with a more detailed strategy expected to be announced in the coming months.

Around £300million of the planned savings will come from reducing labour costs by approximately 30 per cent.

Back-office, IT and support teams are expected to bear the brunt of the cuts, rather than employees who deal directly with customers.

Virgin Media O2 said most of the workers affected by the redundancies would not be in customer-facing positions.

The company will also review how much it spends on external contractors and suppliers as part of the wider cost-cutting programme.

The changes come as Virgin Media O2 faces a difficult regulatory environment surrounding fibre, as well as rapid technological developments across the industry.

Lutz Schuler, chief executive of Virgin Media O2, said: “Given the market conditions we face, the regulatory backdrop in fibre and the technological changes sweeping across all areas of the economy, standing still and doing what we’ve always done is not an option and while many of these decisions are tough, they are necessary for our future success and growth.”

He added that the company was “already progressing and making difficult decisions to prioritise investments and reduce costs which includes the size of our workforce.”

Mr Schuler acknowledged the gravity of the situation, pledging that departing employees would be “treated fairly and with respect.”