Virgin Media O2 plans to cut thousands of jobs as part of a cost-saving programme aimed at generating £800m a year by 2029. The telecommunications group said the measures are intended to help address its £22bn debt pile.
The company, jointly owned by Liberty Global and Telefónica, expects £300m of the savings to come from reducing its workforce. It said the cuts will lower its employee wage bill by 30% over the next two years, but did not give a specific number of roles. The reductions could affect as many as 25% of its 16,000 employees, with most losses expected in non-customer-facing positions.
Virgin Media O2 also plans to increase its use of artificial intelligence in customer service, network planning and fault management. Further savings are expected from using fewer contractors and reviewing supplier and supply-chain agreements.
The company has paused plans to upgrade its network to full fibre beyond existing commitments with partners. The network is 50% complete. It is also exploring wholesale agreements to serve areas beyond its current coverage, including a potential deal with BT’s Openreach that could increase its footprint from 19 million to as many as 25 million homes.
Chief executive Lutz Schüler said the company was making difficult decisions to prioritise investment and reduce costs ahead of a fuller update on its strategic plan in the coming months.
Sources: The Guardian Business.