Virgin Media O2 will cut 2,000 jobs

Virgin Media O2 has cut 2,000 jobs to try and reduce its costs as it struggles under the weight of billions in debt.

On Monday night, some employees received notices of redundancy.

In June, the unions were informed that 800 to 2,000 jobs could be at risk. The company has reportedly decided to eliminate the maximum number roles.

The job cuts , which amount to more than 10% of the mobile operators’ workforce, follow the £31bn debt fueled merger of Virgin Media with O2 two year ago. The combined company was left with £20,2bn in debt and sought £350m per year of cost savings.

Virgin Media O2 confirmed that it planned to make more cuts. A spokesperson said the company was currently consulting on proposals for a simplified operating model, which would result in a reduction of some roles.

We are having open and honest discussions with our employees and the CWU, Prospect and our internal employee representatives about the future of our company.

In 2021, the company stated that it expected to spend £700m between 2021 and 2025 on “integration expenses” as it eliminates duplicate infrastructure and jobs.

Redundancies are being made as a new fibre broadband company, set up by Virgin Media O2 owners Liberty Global and Telefonica, prepares to take on BT.

Nexfibre is also backed up by InfraVia Capital a French private equity company. They want to install fibre broadband in 5 million UK homes by 2026. The project has been funded by £1.4bn from its owners.

The UK Infrastructure Bank, a state-owned institution, invested £250m in Nexfibre last week.

The economic downturn, energy price records and persistently high inflation has led to a wave in consolidation and cost cutting across the British broadband market.

BT will cut 55,000 jobs in the next seven year, as it aims artificial intelligence to replace up a fifth.