O2 Telefónica Germany to cut over 1,000 jobs amid restructuring

O2 Telefónica Germany, the German subsidiary of Spain's Telefónica, announced a plan to eliminate more than 1,000 positions – up to about one in every six to seven employees – as part of a “Future Operating Model” transformation aimed at restoring competitiveness.

The cuts follow the loss of the wholesale client 1&1, which migrated roughly 12 million customers to rival Vodafone in 2024‑2025. The shift caused O2’s 2025 revenue to fall 3.8 % to €8.2 billion and EBITDA to drop 8.8 % to €2.5 billion, with no improvement in the first half of 2026. The company, which employs about 6,820 staff, has already reached voluntary exit agreements in some divisions. New CEO Santiago Argelich Hesse, who succeeded Markus Haas at the end of 2025, also reduced the board from seven to six members.

German unions warn that the large-scale staff reduction, especially in customer service, could degrade service quality for O2’s roughly 18 million mobile customers in a saturated market where growth prospects are limited.