Virgin Media O2 has announced plans to cut thousands of UK jobs as part of a cost-saving overhaul targeting around £800 million in annual savings by 2029, as it faces intense competition and a growing debt pile.
The telecoms company said the majority of the savings, about £300 million, will come from job cuts across its 16,000-strong UK workforce, with the aim of reducing labour costs by around 30%. It did not confirm how many roles will be affected, but said most of those impacted would not be customer-facing.
Focus on head office and support roles
The firm has already been cutting senior leadership positions, and the overhaul is expected to focus largely on head office, IT and support functions. It will also review its use of contractors and suppliers as part of the cost reductions.
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.”
Commitment to affected staff
Schuler 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.”
He said: “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.” The company is expected to provide further details on its strategic plan in the coming months.
