From the Guardian · · 1m 10s
Virgin Media O2 plans 25% job cuts in £800m savings drive
The telecoms company will cut thousands of jobs and increase AI use to tackle its £22bn debt and save £800m annually by 2029.
In brief
The telecoms company will cut thousands of jobs and increase AI use to tackle its £22bn debt and save £800m annually by 2029. Virgin Media O2 is cutting up to 25% of its 16,000 workforce and halting fibre network upgrades to save £800m annually by 2029 and reduce its £22bn debt. Originally reported by the Guardian.
Virgin Media O2 targets £800m in savings
The telecommunications company, jointly owned by Liberty Global and Telefónica, is cutting costs to tackle its £22bn debt pile. The savings plan will run over several years.
Up to 25% of workforce could be cut
Virgin Media O2 will reduce its employee wage bill by 30% over the next two years. £300m of the £800m savings target will come from job cuts affecting up to 25% of its 16,000 workforce.
AI expansion and contractor cuts planned
Most job losses will come from non-customer facing roles. The company intends to increase AI use in customer service, network planning and fault management, and will reduce contractor use and review suppliers.
Fibre network upgrades halted
Virgin Media O2 is halting investment in upgrading its network to full fibre, which is 50% complete, beyond existing commitments.
The one thing
Virgin Media O2 is cutting up to 25% of its 16,000 workforce and halting fibre network upgrades to save £800m annually by 2029 and reduce its £22bn debt.
