Virgin Media O2 to cut up to 4,000 jobs as owners tackle £22bn debt

Virgin Media O2 is preparing to cut thousands of jobs in a sweeping restructuring as its owners try to bring down costs and tackle around £22 billion of debt.

Sky News first reported the plans on Saturday, citing people close to the company. Reuters and other outlets say up to 4,000 roles could go, though the final number has not been decided. Virgin Media O2 declined to comment.

Which jobs are at risk?

Most of the cuts are expected to fall on roles that do not deal directly with customers, such as back-office and support functions. Changes to the senior leadership team are already under way, and the company is expected to review how much it spends on contractors and suppliers.

The Communication Workers Union and Prospect are understood to have been briefed on parts of the plan. No breakdown by department or location has been published.

Why now?

Virgin Media O2 is jointly owned by Liberty Global and Spain’s Telefónica. In July the Financial Times reported that the owners were looking at ways to reduce the debt, and in September it said they were seeking about £600 million of cost savings. The business is also facing the high cost of building and running its broadband and mobile networks, along with tough competition across UK telecoms.

The company is expected to set out a cost-reduction target alongside its third-quarter results on Tuesday, although that may not include a firm figure for redundancies.

If confirmed, the cuts would add to a difficult week for UK jobs, after Poundland’s owner filed for court protection, putting up to 12,000 jobs at risk.

Sources: Sky News, Reuters (via Global Banking & Finance Review), London 999, Financial Times. Photo: Virgin Media store, Mtaylor848, CC BY-SA 4.0.

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