O2 Germany to cut up to 1,100 jobs and close 60 stores

O2 Telefónica Deutschland announced a restructuring that will eliminate up to 1,100 full‑time positions – roughly one‑sixth of its German workforce – by the end of the year. The company, which employed 6,820 full‑time staff in January, will also shut about 60 of its roughly 800 owned shops, leaving franchise locations untouched.

The plan includes voluntary severance packages for affected employees and a restructuring cost of €265 million, with an additional €155 million earmarked for a second‑phase cost‑cutting programme. Management says the measures are needed to safeguard competitiveness after the loss of its former major client 1&1 to Vodafone and to adapt to a saturated market. Union Verdi warned that the cuts could weaken customer‑service quality. Further organisational slimming is scheduled through 2028, aiming to reduce annual expenses by about €185 million.