Virgin Media plans thousands of jobs cuts in £800m cost savings drive
Workforce cuts and AI plans
Virgin Media O2 has not specified the number of positions it will remove. The company said the cuts are part of a drive to reduce costs and prioritise investment.
Chief executive Lutz Schüler said the company was making difficult decisions, including reducing the size of its workforce. VMO2 expects most job losses to affect roles that do not serve customers directly.
The company also plans to expand its use of AI in customer service, network planning and fault management. The Communication Workers Union said it hoped the large-scale cuts could be handled voluntarily to limit the impact on staff.
Network investment and expansion
VMO2 has halted plans to invest in upgrading its network to full fibre beyond existing commitments with partners. The network is 50% complete. The company is exploring wholesale agreements to extend its services into areas its own network does not reach. It confirmed reports of a potential deal with BT’s Openreach that could expand its footprint from 19m to as many as 25m homes.
Other telecoms developments
Earlier this month, VMO2 criticised the decision to fast-track BT’s £400m rescue of TalkTalk. The UK competition regulator has also indicated it might block Nexfibre’s £2bn takeover of Netomnia; Nexfibre’s investors include Liberty Global and Telefonica.
Key points
- Virgin Media O2 is targeting £800m in cost savings while addressing £22bn in debt.
- Up to 25% of its 16,000 employees could be affected, though no final number was given.
- Most job losses are expected in non-customer-facing roles, alongside increased use of AI.
- VMO2 has paused further full-fibre investment beyond its existing partner commitments.