Virgin Media O2 wants to save £800 million by 2029, mostly by cutting jobs and skipping some fiber upgrades. Customers may feel it in support and speeds.
Virgin Media O2, one of the UK's biggest phone and broadband companies, plans to lay off a large number of workers as its sales shrink. The company said on Tuesday it wants to save about £800 million by 2029. Around £300 million of that would come from staff cuts. The Register understands thousands of roles are at risk.
The company currently employs 16,000 people. It said the redundancies will equal roughly 30 percent of its total people costs over the next two years. It says most of the cuts will fall on roles that do not deal with customers directly.
A spokesperson would not give a headcount. Plans are still being finalized, and staff consultations are due to take place.
Sales have fallen over several quarters in a row. In the three months to September 30, revenue dropped 5.7 percent from a year earlier, to £2.43 billion. The company pointed to pressure in the market for home broadband, among other things. It expects revenue to fall 3 to 5 percent across 2026.
Virgin Media O2 was formed in 2021 when Virgin Media and O2 merged. The two promised to spend £10 billion on 5G coverage and on laying full-fiber lines, which run fiber optic cable all the way to the home. They said they needed the combined size to compete with rivals.
The company will stop investing in new fiber network upgrades beyond what it has already committed to. Instead, it will make a low-cost upgrade to its cable network, known as hybrid fiber-coaxial. The goal is to offer 2 Gbps speeds across most of that network in 2027.
The company also plans to give each of its brands a clearer role. O2 Business will streamline its product range.
Analysts say the plan was expected but carries risk. Tom Oughton of Megabuyte warned that cutting headcount by 25 percent or more could stretch operations and worsen customer support. Paolo Pescatore of PP Foresight said cost cuts can buy time but cannot repair lost customer trust.
Noel McClean of the Prospect union said the cuts will be devastating for those affected and will change how the company works.
Consultations with staff are due, and the exact number and type of roles at risk is not yet public. Customers of Virgin Media or O2 may want to watch for any change in how quickly support responds.
If you use Virgin Media or O2, watch for slower support, and expect a cable speed boost in 2027 rather than more fiber.
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