The cuts are the first since the telecoms company was created in 2021
Following the publication of their Q2 results today, Virgin Media O2 (VMO2) has announced that it will cut nearly 11% of its total workforce by the end of the year.
Around 2,000 jobs will be cut in total, confirming rumours that were reported earlier this year.
The losses come just over two years after VMO2 was formed in a £31 billion merger, which has left the newly formed company over £20 billion in debt.
“As we continue to integrate and transform as a company, we are currently consulting on proposals to simplify our operating model to better deliver for customers, which will see a reduction in some roles this year,” a spokesman for the company said earlier today.
The quarterly report confirmed the loss of 24,700 fixed line customers and 1,500 mobile subscribers. The customer losses are likely due to price increases that came into effect in April, combined with the ongoing cost-of-living crisis.
These price rises contributed to a 6.2% year-on-year revenue increase, with total revenue reaching £2.71 billion despite customer losses.
“As we navigate a tough economic climate, we have a clear long-term strategy and continue to deliver for customers,” said VMO2 CEO Lutz Schüler.
“Amidst higher costs, rising usage and continued investment, we executed necessary price increases in line with our expectations with the impact starting to flow through to our Q2 revenue and EBITDA growth.”
The move follows in the footsteps of its major rivals, as BT announced in May that it will cut 55,000 jobs before 2030. CEO Phillip Jansen, who recently confirmed he will step down next year, told investors he expects that AI to replace around 10,000 of the roles.
Vodafone has also announced plans to cut 11,000 jobs over the next three years in an effort to recover from its recent poor financial performance.
Speaking on the numerous recent cuts, analyst Paolo Pescatore of PP Foresight noted that: “We’ve seen a correction in workforce across all sectors, most notably big tech. We are now starting to see this transcend into other verticals. Telco is not immune and with significant technological developments around the corner; this will further fuel job cuts.”
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