Virgin Media O2 May Cut Thousands of Jobs Amid £27.2bn Debt
BBC News reports Virgin Media O2 may cut thousands of roles from its 16,000 workforce to cut costs amid £27.2bn debt and competition; numbers not finalised.
The story in focus
BBC News reports Virgin Media O2 may cut thousands of roles from its 16,000-strong workforce to reduce costs amid £27.2bn total debt and competition from BT and smaller altnet providers. The firm has not finalised numbers; affected staff are expected to be mostly in non-customer-facing roles.
- VMO2 may cut thousands of roles from its 16,000 workforce, but the number is not finalised, the BBC understands.
- Total debt stands at £27.2bn against £45.9bn in assets as of 30 June, per the firm's latest accounts.
- Most affected staff are expected to be in non-customer-facing roles; senior leadership changes are under way.
- VMO2 is expected to review contractor and supplier use alongside the job cuts, first reported by Sky News.
- Prospect union called the cuts disappointing and unsettling; VMO2 declined to comment.
Scope and debt backdrop
BBC News reports that Virgin Media O2 may cut thousands of jobs from its 16,000-strong workforce as the telecoms firm seeks cost savings. The broadband provider has not finalised how many roles will go, but the reduction is likely to be a sizeable share of staff, the BBC understands.
The company's latest accounts show total debt of £27.2bn against assets of £45.9bn as of 30 June. VMO2 declined to comment on the planned cuts.
Roles affected and union response
Most affected staff are expected to be in non-customer-facing positions, and a number of senior leadership changes are already under way, according to the BBC. VMO2 is also expected to review its use of contractors and suppliers in conjunction with the job reductions, which Sky News first reported.
The Prospect union, which represents VMO2 staff, said the cuts were disappointing and very unsettling. Deputy general secretary Noel McClean said the union was committed to supporting members through a difficult time and to working with employers on ways to mitigate redundancies and ensure retraining and redeployment.
Competitive pressure
VMO2 faces competition from smaller altnet providers including Hyperoptic, Community Fibre, Gigaclear and YouFibre, as well as from BT, which has agreed a deal to acquire rival TalkTalk. VMO2 has opposed that takeover.
VMO2's attempt to buy altnet competitor Netomnia for £2bn via nexfibre, a joint venture owned by its owners, has drawn provisional competition concerns from the CMA, with a final decision due in December.
What is the size of Virgin Media O2's debt?
Virgin Media O2's total debt stood at £27.2bn as of 30 June, against assets worth £45.9bn, according to its latest accounts cited by BBC News.
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