Virgin Media O2 job cuts are moving closer to the thousands as the company prepares a £600million cost-reduction drive. The telecoms group has 16,000 staff, and the planned overhaul is set to hit non-customer-facing roles hardest.
The final number has not been set, but one insider said it could reach 4,000. "The final numbers on cost reduction are still moving around," the insider said, as the company lines up its financial target for Tuesday and third-quarter results next week.
Lutz Schuler and Tuesday target
Lutz Schuler is leading the review while Virgin Media O2 prepares to spell out the cost-reduction target in financial terms rather than by naming a fixed headcount of redundancies. That leaves employees in support and back-office roles facing the sharpest pressure, while customer-facing teams appear less exposed.
CWU and Prospect officials have already been told about some of the company’s plans for transformation. Several senior leadership changes are already unfolding too, suggesting the job cuts sit inside a wider reshaping rather than a one-off reduction.
£22billion debt pressure
£22billion of debt is the backdrop to the cuts, and that burden has sharpened scrutiny of how quickly Virgin Media O2 can reduce costs. The company is expected to launch a review into its use of suppliers and contractors, extending the squeeze beyond payroll.
In the summer months, Virgin Media O2’s bond price plummeted, adding another layer of concern around the business before the coming redundancy push. If the company sticks to a financial target instead of a fixed job figure, the real scale of the shake-up will only become clear as the review settles and the redundancies move from planning to execution.
