Virgin Media O2 prepares to cut thousands of jobs

Virgin Media O2 is preparing to cut thousands of jobs as it seeks to reduce costs amid heavy debt and intensifying competition, the BBC reports. The telecoms company has not settled how many roles will go, but the cuts could affect a sizeable share of its 16,000 employees.

Most of the roles at risk are expected to be non-customer-facing, according to the BBC. The company is also expected to review its use of contractors and suppliers, while changes among senior leaders are already under way.

VMO2 declined to comment. The Prospect union, which represents staff, called the cuts “disappointing and very unsettling”. Its deputy general secretary, Noel McClean, said the union would support members and work with the company to explore ways to reduce redundancies, including retraining and redeployment.

The company’s latest accounts, covering the position at 30 June, showed debt of £27.2bn and assets worth £45.9bn. It faces competition from smaller broadband providers as well as larger rivals such as BT.

VMO2 has also challenged BT’s agreed takeover of TalkTalk, which the Competition and Markets Authority approved in October. The BBC reported that VMO2 was close to a deal to use BT’s fibre network, and was likely to announce a halt to all investment in its own fibre network in results due on Tuesday. Those plans had not been confirmed by VMO2.