business
Virgin Media O2 to cut thousands of jobs as it tackles £22bn debt
Virgin Media O2 is set to cut thousands of jobs as it tackles its £22bn debt, the BBC understands.
Key points
- The broadband provider has not finalised how many roles will be cut from its 16,000-strong workforce.
- Most affected staff are in roles that are not customer-facing, the BBC has been told.
- Virgin Media O2 total liabilities stood at £27.2bn against assets of £45.9bn as of 30 June, per its latest accounts.
Why it matters. The job cuts are likely to affect a sizeable share of staff as the company faces cheaper altnet rivals, and a CMA decision on its Netomnia deal is due in December.
Virgin Media O2 is set to shed thousands of roles in the UK as it tackles its £22bn debt, the BBC understands. The broadband provider has not finalised numbers, but cuts are likely to hit a sizeable share of its 16,000-strong workforce, with most affected staff in non-customer-facing roles. The company declined to comment, while the union Prospect called the cuts 'disappointing and very unsettling'.
Latest updates
Virgin Media O2 to cut thousands of jobs as it tackles £22bn debt
Thousands of Virgin Media O2 staff are facing redundancy as the telecoms firm tries to save money, the BBC understands. The company has not finalised how many roles will go, but the cuts are likely to amount to a sizeable share of its 16,000-strong workforce. Virgin Media O2 has billions of pounds of debt on its balance sheet, and one trade publication reports that investors are concerned about its ability to service a debt pile of £22bn. The company is competing with smaller providers as well as larger players such as BT, which has agreed a deal to acquire rival TalkTalk. Further details on the number of job losses are expected once the company completes its planning.