Virgin Media O2 cost cuts: up to 25% of 16,000 staff could lose their jobs

Telecoms company Virgin Media O2 (VMO2) plans to cut thousands of jobs as part of a savings programme. The plan is meant to help the firm deal with debt of £22bn.

What the company announced

VMO2, co-owned by Liberty Global and Telefónica, said £300m of the planned savings would come from reducing headcount. Over the next two years, this is expected to cut staff pay costs by 30%.

The company did not give an exact number of roles to be cut. According to Polish Express, the cuts could affect up to 25% of its 16,000 employees. This is an estimate, not an official statement from the company.

The cost cuts, which are meant to save the company £800m a year by 2029, also include reducing the use of external contractors and a review of suppliers and contracts in the supply chain.

More artificial intelligence

VMO2 wants to make greater use of AI-based tools, including in customer service, network planning and fault management. The company has offices in London, Reading and Dublin.

Chief executive Lutz Schüler said the company would present fuller details of its new strategy in the coming months. He added that difficult decisions were already being taken, including on team size. In his words, standing still is not an option.

Union reaction

Noel McClean, deputy general secretary of the Prospect union, said the proposed 30% cut in employment costs would be "devastating" for those directly affected. He said it would also hit the employees who remain at the company.

What this means for you

The source does not say how many people or which roles will be affected, nor does it describe any impact on customers. People working for VMO2 or its contractors may be affected, as the plan also includes reducing work with external firms. Details are due in the coming months, and anyone concerned should follow announcements from their employer and the union.