Virgin Media O2 to axe thousands of jobs in sweeping shake-up
The 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.
By Sky News
Virgin Media O2 is preparing to cut thousands of jobs as it works to reduce costs amid investor concerns over its £22 billion debt.
The telecoms company is drawing up plans that could affect a substantial proportion of its 16,000-strong workforce over the coming months, according to people close to the business.
The exact number of redundancies has not yet been finalised. However, one insider suggested that as many as 4,000 roles could be affected.
Most of the cuts are expected to involve non-customer-facing positions. Changes to the company’s senior leadership are also already under way.
Virgin Media O2 is jointly owned by Liberty Global and Telefónica. The business is led by chief executive Lutz Schüler.
The company is also expected to review its use of contractors and suppliers as part of the cost-cutting plans.
The proposed shake-up comes before Virgin Media O2’s third-quarter results, when it is expected to confirm a cost-reduction target in financial terms rather than announce a final number of job losses.
The results will be published as concerns about the company’s debt position continue. The price of its bonds reportedly fell sharply during the summer.
The Financial Times reported in July that Virgin Media O2 was considering measures including reductions to its dividend and capital spending to reduce its debt.