Virgin Media O2 to cut thousands of jobs over debt concerns

Summarised from 3 outlets · Updated 31 Oct, 16:56 · Archive

Virgin Media O2 is planning redundancies to reduce costs amid concerns about its £22bn debt.

Virgin Media O2 is planning to axe thousands of jobs as part of a major cost-cutting drive aimed at tackling its £22bn debt pile. The telecoms giant, jointly owned by Liberty Global and Telefonica, employs 16,000 staff. According to the Daily Mail, Virgin Media O2 could cut as many as 4,000 jobs, representing around 25 per cent of its workforce. The majority of those facing redundancy are said to be in non-customer-facing roles, whilst changes to senior leadership positions have already begun.

The company is also reviewing its contractors and suppliers to identify further cost savings. Trade union officials at the CWU and Prospect have been informed of the plans. The redundancies are expected to take place over the coming months, with the company's third-quarter results next Tuesday expected to confirm a cost-cutting target focused on financial rather than specific headcount decisions. A source told Sky News that 'the final numbers on cost reduction are still moving around'.

The cost-cutting move comes as investor concerns mount about the company's ability to service its substantial debt. The price of its bonds plummeted earlier this month and hit record lows, following the UK's Competition and Markets Authority statement that Virgin Media O2's planned joint venture with Nexfibre Networks to acquire Netomnia Ltd could reduce competition in the UK broadband market. If that deal proceeds, Virgin Media O2 could receive £1bn in cash to help address its debt burden.

How it is being reported

• Virgin Media O2 to axe thousands of jobs as it cuts costs to battle £22billion debtThousands of employees at Virgin Media O2 are set to be out of a job as the telecoms giant has been drowning in £22billion debt.Daily Mail · 31 Oct, 10:46
• Virgin Media O2 to axe thousands of jobs amid concerns over £22bn debt pileVirgin Media O2 is preparing to axe thousands of jobs as the UK telecoms giant launches a major cost-cutting shake-up.The Mirror · 31 Oct, 10:29
• Virgin Media O2 to axe thousands of jobs in sweeping shake-upThe telecoms giant Virgin Media O2 (VMO2) is to axe thousands of jobs as it slashes its cost base amid investor concerns about its ability to service its £22bn debt mountain.Sky News · 31 Oct, 09:49

In this story: Virgin Media O2 · Liberty Global · Telefonica · CWU · Prospect · Nexfibre Networks · Netomnia Ltd · UK Competition and Markets Authority

This summary was written by AI from the headlines and standfirsts above, and states as fact only what at least two outlets report. How we use AI · Report a problem · Corrections log