Virgin Media O2 to cut its workforce by 10 percent – with 2000 jobs set to go by the end of the year
- Redundancy notices were issued to some staff on Monday night
- Hundreds of staff have been added to the 1,400 put at risk in February
British mobile operator Virgin Media O2 said on Monday it was planning to lay off up to 2,000 employees by the end of this year.
Hundreds of staff have been added to the 1,400 put at risk in February and redundancy notices were issued on Monday night, the Telegraph reported.
The company is a joint venture between the US-listed Liberty Global and Spain’s Telefónica through the merger of their respective Virgin Media and O2 UK businesses.
Its rival BT Group, Britain’s biggest broadband and mobile provider, had cut 55,000 roles or more than 40 per cent of its workforce in May.
Liberty Global also holds 5 per cent in Vodafone, which also plans to slash 11,000 jobs globally over three years as it forecast a 1.5 billion euro (£1.29 billion) drop in annual year’s free cash flow.
The job cuts take up more than a tenth of Virgin Media O2’s workforce and follow the £31bn merger two years ago
Earlier this month, the country’s communications regulator Ofcom opened a probe, following complaints from users that the mobile operator was making it tough to cancel services.
The job cuts take up more than a tenth of Virgin Media O2’s workforce and follow the £31bn merger two years ago.
The combined company was left with £20.2bn of debt after the deal and seeking £350m of annual cost savings.
A spokesman confirmed to the Telegraph that Virgin Media O2 planned bigger cuts and said it was ‘currently consulting on proposals to simplify our operating model… which will see a reduction in some roles this year’.
The spokesman added: ‘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 and Prospect along with our internal employee representatives as we have open and honest conversations on the future direction of our business.’
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