LONDON, UK – Virgin Media O2 is preparing a major workforce shake-up that could put thousands of jobs at risk as the British telecommunications giant seeks to reduce costs and ease investor concerns over its £22 billion debt burden.
The company, which is jointly owned by Liberty Global and Spain’s Telefónica, is drawing up restructuring plans that could affect a substantial portion of its approximately 16,000 employees.
According to a report by Sky News, sources familiar with the discussions said the number of potential redundancies had not been finalised, although one insider estimated that as many as 4,000 positions could be affected.
The proposed reductions are expected to fall largely on employees in non-customer-facing roles, while changes to the company’s senior leadership structure are already under way under chief executive Lutz Schuler.
Virgin Media O2 has not confirmed the reported job cuts. A company spokesperson declined to comment on the redundancy plans.
The developments come ahead of the company’s third-quarter financial results, scheduled for November 3, when management is expected to outline a cost-reduction target in financial terms rather than specify a number of jobs to be eliminated.
£22bn debt pile puts pressure on telecoms giant
The restructuring comes amid growing concerns among investors about Virgin Media O2’s ability to manage its substantial debt while facing intense competition in the British broadband and mobile markets.
The company’s bonds experienced a significant sell-off during the summer, reflecting concerns about its financial position and ability to service its borrowing.
In September, the Financial Times reported that Liberty Global and Telefónica were pushing for approximately £600 million in cost reductions across the business.
The proposed savings were expected to come from a combination of workforce reductions, lower operating expenditure and cuts to capital spending.
The latest reported redundancy plans suggest that employment could become a major part of the cost-cutting exercise.
Virgin Media O2 is also expected to review its use of external contractors and suppliers as it seeks to reduce expenditure.
Openreach deal could reshape broadband strategy
The planned restructuring is unfolding as Virgin Media O2 reassesses its network expansion strategy amid fierce competition from BT’s Openreach and smaller fibre broadband operators.
The Financial Times reported that Virgin Media O2 was nearing an agreement to use Openreach’s fibre network in parts of the UK, potentially expanding its reach beyond the approximately 19 million homes covered by its existing network arrangements to as many as 25 million.
The arrangement would allow the company to serve customers in areas where building its own infrastructure may be too expensive.
The company is also expected to slow or halt parts of its independent network expansion programme to reduce capital expenditure.
The strategy reflects the changing economics of Britain’s broadband market, where several alternative fibre operators have struggled with high borrowing costs and the expense of building networks.
CityFibre, one of the major challengers to Openreach, is also facing financial pressure and has been negotiating with lenders over a possible debt restructuring.
Competition watchdog dispute adds to uncertainty
Virgin Media O2’s restructuring is also taking place against a backdrop of regulatory uncertainty surrounding consolidation in the British fibre broadband market.
The Competition and Markets Authority has raised concerns about a proposed £2 billion transaction involving Netomnia and nexfibre, a wholesale fibre network venture backed by investors that include Virgin Media O2’s parent companies.
The regulator has indicated that it may favour an alternative transaction involving CityFibre, a position opposed by Netomnia’s shareholders.
The disagreement has added another complication for Virgin Media O2 as it seeks to strengthen its competitive position while reducing debt and controlling investment costs.
Separately, the proposed BT takeover of TalkTalk has raised concerns among rival operators about the potential impact on competition and Openreach’s position in the market.
Thousands of jobs remain at risk as company prepares results
The potential redundancies would add to a wider wave of restructuring across Britain’s telecommunications sector, where operators are under pressure to improve efficiency and manage rising costs.
Virgin Media O2 previously announced plans to cut up to 2,000 jobs in 2023. In January 2026, it also notified approximately 300 employees of potential redundancies, although some were expected to move into other roles.
Other operators, including BT and VodafoneThree, have also pursued workforce and operational changes.
Virgin Media O2’s third-quarter results on November 3 are expected to provide further details about its financial performance and cost-reduction strategy.
