Virgin Media O2 could cut up to 4,000 jobs in cost-cutting drive

Virgin Media O2 is reportedly preparing thousands of redundancies as it faces pressure over £22bn debt burden

The network could cut up to 4,000 jobs as part of a major restructuring, according to a report by Sky News.

The broadcaster reported that redundancies were being planned for the coming months, predominantly affecting staff in non-customer-facing roles. Union officials at the CWU and Prospect have reportedly been briefed on elements of the plans.

Sky said the final headcount reduction remained undecided. A Virgin Media O2 spokesman declined to comment on the redundancy plans.

Reuters subsequently picked up Sky’s reporting, noting that the operator employs around 16,000 people. A reduction of 4,000 would represent a quarter of its workforce. The news agency said Virgin Media O2 had not immediately responded to its request for comment.

The restructuring reports follow mounting scrutiny of the group’s finances. The Financial Times reported in September that joint owners Liberty Global and Telefónica were seeking approximately £600m in savings through a combination of job losses and reductions in operating and capital expenditure.

The FT linked the proposed savings to investor concerns about the sustainability of VMO2’s £22bn debt burden following a summer sell-off in its bonds.

The operator’s latest published results underline the competitive pressure on the business. Second-quarter service revenue fell 3.9 per cent year on year to £2.04bn, while adjusted EBITDA declined 2.9 per cent to £975.2m, with both comparisons adjusted for the Daisy transaction.

Virgin Media O2 is scheduled to publish its third-quarter results on Tuesday, November 3.