Virgin Media O2 confirms plans to axe thousands of jobs in cost-cutting drive

Updated: 03:30 EDT, 3 November 2026 Virgin Media O2 has confirmed it will cut thousands of jobs from its 16,000-strong workforce as it comes under pressure to cut costs. The telecoms company is ‘taking action to create a simpler company’ and targeting savings of £800million a year by 2029, with £400million delivered in 2027. It said the bulk of the cost savings – about £300 million – will come from job cuts, with aims to reduce labour costs by around 30 per cent. It did not disclose how many jobs would be cut. Changes to several senior leadership roles have already taken effect, and the company also plans to reduce its use of contractors and review technology licences. It confirms reports over the weekend that the firm, jointly owned by Liberty Global and Telefónica, planned to cut roles as the broadband giant looks to tackle its £22billion debt pile. Trying times: Virgin Media O2 is battling a balooning debt pile and stiff competition Virgin Media O2 said the job losses come against a backdrop of a ‘tough macroeconomic climate, an intensely competitive and shrinking broadband market and a paradoxical regulatory direction in fibre that does not reflect economic reality.’ The broadband group has struggled with falling customer numbers and revenues, and fierce competition from smaller challengers and giants like BT, which recently agreed a deal to buy rival TalkTalk. Revenue fell by 5.7 per cent in the three months to September 30, while adjusted earnings slipped 2.6 per cent to £995.2m, fresh figures showed today. Lutz Schüler, CEO of Virgin Media O2 said: 'The direction we’re setting today paves the way for the next chapter of Virgin Media O2: a company that will be leaner, clearer on priorities and faster in delivery, with brilliant brands and an unwavering focus to get back to what really makes a difference to our customers.‘Given the market conditions we face, the regulatory backdrop in fibre and the technological changes sweeping across all areas of the economy, 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.’He added: 'This is not something I take lightly but my commitment to our people is that for those leaving we will treat them fairly and with respect.' Schüler has pledged to improve the firm's customer service record after Ofcom fined Virgin Media O2 £28million in July. The regulator said the company had prevented or delayed contract cancellations between January 2022 and September 2024. He has also brought in former Pets at Home boss, Lyssa McGowan, to overhaul its consumer business, with reports suggesting it could relaunch Virgin Mobile. The price of Virgin Media O2's bonds plummeted earlier this month and hit record lows.It came after the UK's Competition and Markets Authority (CMA) warned the planned £2billion acquisition of Netomnia Ltd by Nexfibre Networks – a joint venture backed by Liberty Global and Telefonica – could lead to reduced competition in the UK broadband market.DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you