Virgin Media O2 announces layoff: 2,000 positions to go by year's end

Virgin Media O2, the British mobile operator, announced lay off up to 2,000 employees by the year's end. The telecoms giant began issuing redundancy notices to some staff on Monday night.

The job cuts, which encompass certain organisational changes already disclosed to workers, will account for over 10% of the mobile operator's workforce.

"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,” A Virgin Media O2 spokesperson said, as per media reports. 

"While we know any period of change can be difficult, we are committed to supporting all of our people and are working closely with the CWU and Prospect along with our internal employee representatives as we have open and honest conversations on the future direction of our business,” added the spokesperson. 

After rival BT Group slashed 55,000 roles in May, Virgin Media O2 is now following suit with its own job cuts. BT outlined in its annual results that it aims to reduce its "total labour resource" from 130,000 to between 75,000 and 90,000 by the end of the decade through a "rolling plan."

During discussions with investors, Chief Executive Philip Jansen disclosed his expectation that approximately 10,000 roles would be replaced by AI technology. Virgin Media O2 came into existence through a joint venture between US-listed Liberty Group and Spain's Telefonica in 2020. 

Recently, Ofcom initiated an investigation into the company after receiving complaints about the mobile operator making it difficult for customers to cancel services.

In addition to its stake in Vodafone, the Liberty Group intends to cut 11,000 jobs globally over the course of three years. This decision aligns with the company's forecast of a significant $1.6 billion (£1.2 billion) decline in annual free cash flow. 

The news has generated substantial anxiety among employees, particularly during these unprecedented economic times, as stated by Tracey Fussey, the assistant secretary of the Communication Workers Union. Workers are now feeling vulnerable about the security of their jobs amidst the ongoing economic crisis.