Virgin Media O2 is planning to cut the size of its work force by around 2,000 positions by the end of 2023. The number includes 800 job losses reported earlier this year.Unions were told in June that between 800 and 2,000 jobs were at risk – with the decision now made to cut the maximum number of posts.
The Liberty Global-Telefonica joint-venture is struggling to bring down costs against of backdrop of several billion pounds in borrowing.
A spokesperson for Virgin Media O2 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.”
Rival BT has announced plans to reduce staff numbers by 55,000 over the next seven years. Its anticipated a fifth of these will be replaced by artificial intelligence.
Analyst Paolo Pescatore said he was expecting more job losses across the sector. “For all providers it’s an opportune moment to focus on efficiencies. This is only part of a successful long-term strategy. There should be a greater focus on driving revenues as well.
“We’ve seen a correction in workforce across all sectors, most notably big tech. We are now starting to see this transcend into other verticals. Telco is not immune and with significant technological developments around the corner; this will further fuel job cuts.”
However, Virgin’s underlying profits were up – to over a billion pounds – in the three months to the end of June.
