Virgin Media O2 announces plans to slash up to 2,000 jobs

The mobile phones giant is set to slash thousands of jobs. Credit: PA

Mobile phone giant Virgin Media O2 is poised to axe up to 2,000 jobs by the end of the year.

The telecommunications operator said the move, which includes around 800 previously reported job cuts, will affect around 12% of its workforce.

It follows rivals BT and Vodafone in reducing the size of its workforce, after each company revealed plans to slash thousands of roles earlier this year.

The cuts come around two years after the business was created by the £31 billion merger between mobile operator O2 and broadband and TV specialist Virgin Media.

A spokesman said: “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.

“While we know any period of change can be difficult, we are committed to supporting all of our people and are working closely with the CWU (Communication Workers Union) and Prospect along with our internal employee representatives as we have open and honest conversations on the future direction of our business.”

On Tuesday, the telecoms firm also posted an improvement in its revenues and earnings for the latest quarter as it continues to expand its network.

Virgin Media O2 said transaction adjusted revenue increased by 6.2% over the quarter to June 30.

It came after the firm benefited from price rises for customers, which also helped contribute towards a 4.6% increase in its earnings before interest, tax, depreciation and amortisation (EBITDA).

The group said it had around 5.8 million customers during the period, after a 24,7000 reduction against the previous quarter.

Chief executive Lutz Schuler said: “As we navigate a tough economic climate, we have a clear long-term strategy and continue to deliver for customers.

“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.”

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