Virgin Media O2 has announced plans to cut thousands of jobs as part of a drive to reduce costs by around £800 million a year by 2029. The telecoms giant, which employs about 16,000 people across the UK, said the bulk of the savings—around £300 million—will come from reducing its labour costs by roughly 30%.
The company did not confirm how many roles will go, but said most of those affected would not be customer facing. It has already been cutting senior leadership positions, and the overhaul is expected to focus largely on head office, IT and support functions. Virgin Media O2 will also review its use of contractors and suppliers as part of the cost reductions.
CEO cites market pressures
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: "While we will give a fuller update on the new strategic plan in the coming months, we are already progressing and making difficult decisions to prioritise investments and reduce costs which includes the size of our workforce. This is not something I take lightly but my commitment to our people is that for those leaving we will treat them fairly and with respect."
Impact on workforce
The company is battling intense competition and a mounting debt pile. A fuller update on the new strategic plan is expected in the coming months.
