In Q2 2023, Virgin Media O2 lost 15,300 broadband customers and 1,500 mobile customers
Virgin Media O2 announced plans this week to cut 2,000 jobs, becoming the latest telco to do so in the U.K., following rivals BT and Vodafone, which revealed plans to axe 55,000 and 11,000 positions over the next several years, respectively. Like others, Virgin Media O2 has cited rising costs as the main motivation behind the decision to downsize.
“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,” said the company. The cuts amount to approximately 10% of the company’s total workforce, and according to reports, is the first of any scale since Virgin Media and O2 merged two years ago.
“While we know any period of change can be difficult, we are committed to supporting all of our people,” it added.
This news coincides with the Virgin Media O2’s Q2 results, which showed that it lost 15,300 net broadband customers and 1,500 mobile customers. However, the carrier still recorded a Q2 transaction-adjusted revenue increase of 6.2% year-over-year, to £2.71 billion (US$3.47 billion). Currently, the carrier is working on multibillion-pound full-fibre network to reach about 80% of the UK by 2028 with high-speed broadband.
When BT announced its job cuts, it said it will likely replace 10,000 of the positions with AI, particularly roles in customer service and network management. The layoffs over at Vodafone were part of a larger $1.1 billion dollar cost-cutting effort.
