Business · Companies · 14 hrs ago
Virgin Media O2 plans thousands of job cuts to reduce costs
Virgin Media O2 is planning thousands of job cuts as part of a cost-cutting programme at the UK telecoms company.
It has about 16,000 employees, and up to 4,000 jobs could be affected, though the exact number has not been decided.
The company is jointly owned by Telefónica and Liberty Media, and investors and lenders are concerned about its £22 billion debt.
Most affected workers are expected to be in roles without direct customer contact, and the company is also reviewing its use of contractors and suppliers.
It has reportedly paused some fibre network expansion and upgrades, with plans to use BT’s network in some areas instead.
Virgin Media O2 is due to present quarterly results next Tuesday, when it is expected to set out a financial cost-cutting target; it has not confirmed a job-cut target.
Virgin Media O2 is planning thousands of job cuts as part of a cost-reduction programme, according to reports cited by Spanish media.
The cuts could affect up to 4,000 employees, or about a quarter of the company’s 16,000-person workforce.
The exact number of job losses has not been settled, and most affected roles are expected to be those without direct customer contact.
The company is due to present financial cost-saving targets next Tuesday, but is not expected to give a staffing target then.
The reports cite concern about VMO2’s debt, which is stated as £22 billion in one article and about €25.6 billion in the other.
- Who
- Virgin Media O2, a British telecoms company.
- What
- It is planning thousands of job cuts to reduce costs. Up to 4,000 positions could be affected.
- When
- The cuts are being planned for the coming months. The company is due to present cost-saving targets next Tuesday.
- Where
- United Kingdom.
- Why
- To reduce costs amid concern about the company’s debt.
This story does not have two clearly opposing sides.
The Financial Times reported that VMO2 was considering ways to reduce its debt, including cutting dividends and investment by £600 million.
The company’s bond prices fell sharply, according to Expansión.
VMO2 is planning job cuts, with the number not yet settled.
The company is due to present financial cost-saving targets.
- Workforce
- About 16,000 employees
- Potential job cuts
- Up to 4,000 positions
- Share of workforce
- About 25%
- Debt
- £22 billion, according to Expansión; about €25.6 billion, according to Cinco Días
- Cost-saving target report
- Next Tuesday