Virgin Media O2 將裁減數千個職位以節省成本

Reasons behind layoffs include a tough macro-economic climate and a shrinking broadband market, Virgin Media O2 said.

Virgin Media O2 is laying off thousands in a cost-cutting drive as it looks to tackle its £22bn debt. The company said that the layoffs – a majority of which are expected in non-customer facing roles, will reduce the company’s labour costs by 30pc and help save £300m by 2029.

Virgin Media O2 hasn’t specified how many will be affected in this round of layoffs, although reports place it at around 25pc of its 16,000-strong workforce. Restructuring costs are expected at around £250m, according to the business which expects to pay it back within a year.

The job cuts are part of a major strategic overhaul across Virgin Media O2’s units, including its fixed and mobile networks. The new plan is expected to save the business approximately £800m by 2029, with around £400m delivered in 2027. The company’s planned cost-cutting measures were first reported earlier this year.

In a statement today (3 November), the company said that it is creating a “leaner, simpler organisation”, “concentrating resources and investment on fewer, larger opportunities” and increasing its use of AI tools to “support faster decision-making and delivery”.

Virgin Media O2, which is jointly owned by Liberty Global and Telefónica, said that the organisational changes result from “a tough macro-economic climate, an intensely competitive and shrinking broadband market”.

“This is balanced by the rapid evolution and adoption of AI tools that are transforming how businesses run and operate, presenting an opportunity to move more efficiently,” it added.

“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,” said Lutz Schüler, the company’s CEO. “We will give a fuller update on the new strategic plan in the coming months”.

The announcement comes alongside a disappointing quarter for Virgin Media O2 after it reported a total revenue drop of 5.7pc, with consumer and business revenue both being negatively affected.

The company also said that it is halting investment in further fibre upgrades beyond its existing commitments over market economics that do not support overlapping fibre networks.

Last week, a Financial Times report suggested that the business is near closing a deal to use rival telecommunications giant BT’s fibre broadband network to host new customers in areas not yet covered by its existing network.

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