Virgin Media O2 has announced a sweeping restructuring that will put thousands of UK jobs at risk, as the telecoms giant targets annual cost savings of around £800 million by 2029. The company, which employs about 16,000 people, said roughly £300 million of the savings would come from reducing the size of its workforce, equivalent to about 30 per cent of its total people costs over the next two years.

The company has not confirmed a final headcount number, and says the precise number of roles affected, the locations involved and the timetable remain subject to consultation. Reports have suggested as many as 4,000 positions could be affected. Virgin Media O2 said the majority of the reductions would come from non-customer-facing roles, and that organisational changes are already under way, with a significant reduction in senior leadership roles since the summer.

The cuts form part of a wider programme to create a simpler company, with around £400 million of the savings due to be delivered in 2027. The plan also includes a halt to further fibre upgrades beyond existing commitments, greater use of artificial intelligence and digital tools, and a reduction in the use of contractors.

Chief executive Lutz Schüler said the decisions are tough but necessary, and promised that people leaving would be treated fairly and with respect. He said the company must evolve to get back to winning, adding that standing still is not an option given market conditions, the regulatory backdrop in fibre and the spread of AI.

The announcement came alongside third-quarter results showing total revenue down 5.7 per cent year on year to £2.43 billion. The company said it would give further details on its strategic plan around the time of its full-year results, with most of those affected expected to be notified by February.

[Source: news.virginmediao2.co.uk](https://news.virginmediao2.co.uk/virgin-media-o2-prepares-ground-for-new-strategic-plan-to-simplify-the-business-and-drive-sustainable-growth/) | [Source: theregister.com](https://www.theregister.com/networks/2026/11/03/virgin-media-o2-outlines-plans-to-lay-off-thousands-as-revenue-falls/5307194)