Virgin Media O2 layoffs and AI

Virgin Media O2, in its press release of 3 November 2026: "Cost savings at an annual run rate of approximately £800 million by 2029, with around £400 million delivered in 2027, will result in a reduction in roles and fewer organisational layers, with senior leadership changes already underway, alongside a greater use of AI and digital tools to support faster decision-making and delivery" ... "It comes against the backdrop of a tough macro-economic climate, an intensely competitive and shrinking broadband market and a paradoxical regulatory direction in fibre that does not reflect economic reality. This is balanced by the rapid evolution and adoption of AI tools that are transforming how businesses run and operate, presenting an opportunity to move more efficiently and at pace." ... "Approximately £300 million of the 2029 run-rate saving is expected to come from a reduction in the size of the workforce, which equates to roughly 30% of the company’s total people costs over the next two years, with the majority of the reduction coming from non-customer facing roles." ... "The company also expects a greater use of AI tools and digital channels to drive efficiency, productivity and better customer experience." Chief executive Lutz Schüler, in the same release: "Given the market conditions we face, the regulatory backdrop in fibre and the technological changes sweeping across all areas of the economy, standing still and doing what we’ve always done is not an option" ... "we are already progressing and making difficult decisions to prioritise investments and reduce costs which includes the size of our workforce."

Virgin Media O2 said on 3 November 2026 that it will reduce its UK workforce of about 16,000 over the next two years, with about £300 million of a planned £800 million in yearly savings coming from the cut, roughly 30% of its total people costs, mostly in roles that do not deal with customers; Sky News had reported on 31 October, citing people close to the company, that up to 4,000 jobs could go. The company gives as its backdrop a tough economy, a shrinking and fiercely competitive broadband market and fibre regulation it calls paradoxical, balanced by AI tools that are transforming how businesses run, and says greater use of AI will drive efficiency and productivity, including in customer service, network planning and fault management. AI is one of several reasons it names, and it does not say AI will do the work of the roles cut. The company has not said how many jobs will go, so the 4,000 is a reported maximum from unnamed sources and is not counted; senior leadership roles have already been cut, and further reductions are proposals subject to consultation.

Roles the sources name:

Senior leadership roles and organisational layers (the company: 'fewer organisational layers', 'a significant reduction of senior leadership roles since the summer'); Mostly roles that do not deal with customers (the company: 'the majority of the reduction coming from non-customer facing roles'); Head office, IT and support functions, where PA expects the overhaul to focus (per PA)

Share of the workforce:

up to about 25% of its 16,000 UK staff, by Sky News's sources (up to 4,000); the company itself says the cut equals roughly 30% of its total people costs