Virgin Media O2 to cut thousands of jobs in £800m savings drive

Cost plan and job cuts

Virgin Media O2, the UK telecoms group jointly owned by Telefónica and Liberty Global, said on Tuesday, 3 November 2026 that it will cut thousands of jobs as part of a programme targeting £800m in annual savings by 2029. About £400m of that is expected to come in 2027. The company expects £300m of the 2029 savings to come from a smaller workforce, equal to roughly 30% of its staff costs over the next two years. It has not said how many roles that means, although it employs around 16,000 people. The Guardian wrote that the reductions could reach as many as 25% of that workforce, a figure the company did not confirm.

Savings expected in 2027400

Annual savings target by 2029800

Savings from workforce cuts by 2029300

Savings expected in 2027

400 £m

Annual savings target by 2029

800 £m

Savings from workforce cuts by 2029

300 £m

Data from the article text

The company said most of the job losses will fall on roles without direct contact with customers, and that the proposals remain subject to consultation. La Vanguardia reported that the exits will be handled through talks with trade union representatives on a voluntary basis.

Management and operations

Senior management roles have already been cut significantly since the summer, with changes to the Executive Committee. Commercial and operational units have been brought together under Lyssa McGowan, chief executive of the consumer division. Further reductions will follow across the business. Other savings will come from using fewer contractors, simplifying relationships with suppliers and the supply chain, and reviewing technology licences.

Investment and AI

The company will make greater use of AI tools in customer service, network planning and fault management to raise efficiency and productivity. It is also halting investment in its full-fibre roll-out beyond existing commitments with partners, a network the Guardian says is 50% complete. El Mundo linked the plan to a key setback from the UK competition authority over the purchase of fibre operator Netomnia. The company is exploring wholesale deals for areas its network does not reach. Reports say it is close to a deal with BT's Openreach that could extend its footprint from 19 million to potentially 25 million homes.

Debt, customers and the chief executive's case

Chief executive Lutz Schüler said the decisions are difficult but necessary.

“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.”

The group carries about £22bn of debt, and El Mundo said its debt is the largest among Telefónica's subsidiaries, at £21,951m. The FT reported that the company was hit by a sell-off in its bonds during the summer, over concerns that price competition from small fibre operators was hurting its ability to service that debt. In the third quarter it lost 23,000 broadband customers between July and September. The FT counted more than 55,000 customers lost this year, after 138,400 were lost last year. El Mundo said revenue and profit fell 5.7% and 2.6% in the third quarter.

What comes next

Schüler said the company must change its course in order to keep growing.

“Virgin Media O2 must evolve, and the action needed to make that happen starts now.”

El Mundo reported that the full strategic plan will be presented in February, and the company has said that fuller updates will follow in the coming months. FT analyst James Ratzer of New Street Research said the new cost measures were needed to keep pace with competitors under pressure on broadband pricing.