Virgin Media O2 has revealed plans to axe thousands of UK jobs under aims to slash costs by around £800 million a year by 2029 as it battles intense competition and a mounting debt pile.
The telecoms giant said the bulk of the cost savings – about £300 million – will come from job cuts among its 16,000-strong workforce in the UK, with aims to reduce its labour costs by around 30%.
It did not confirm how many roles will go, but said most of those affected would not be customer facing.
The firm has already been cutting senior leadership positions and the overhaul is expected to largely focus on head office, IT and support functions.
It will also review its use of contractors and suppliers as part of the swingeing cost reductions.
Lutz Schuler, chief executive 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.
“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.”
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