Virgin Media O2 to cut up to 25% of workforce in £800m cost drive
The telecoms company plans job reductions and increased automation to reduce debt and lower wage costs.
At a glance
- Up to 25% of the 16,000-strong workforce faces redundancy
- £300m of £800m savings target will come from job cuts
- Employee wage bill to fall by 30% over two years
- Company plans to expand use of AI in customer service
Virgin Media O2 is implementing an £800m cost-cutting programme that will result in significant job losses across its 16,000-strong workforce. The company, jointly owned by Liberty Global and Telefónica, aims to reduce its employee wage bill by 30% over two years, with £300m of the savings coming from redundancies.
The telecommunications group said it will increase its use of artificial intelligence in areas including customer service as part of the restructuring. The moves are designed to help the company address its £22bn debt burden.
Why it matters
The cuts reflect broader industry trends of using automation to reduce costs amid challenging economic conditions and high debt levels in the telecoms sector.
Original reporting
- The Guardian — WorldVirgin Media O2 to cut thousands of jobs as it plans £800m cost savings
- The Guardian — BusinessVirgin Media O2 to cut thousands of jobs as it plans £800m cost savings
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.
