O2 Germany to cut over 1,000 jobs amid union criticism

Telecom operator O2 (Telefónica Germany) plans to eliminate more than 1,000 positions out of its 6,820‑strong German workforce, roughly one in six jobs. The move is presented as part of “various measures” to safeguard long‑term competitiveness, but Verdi union secretary Christoph Heil warned that the plan lacks a clear strategic vision and appears to be a cost‑cutting directive from the Spanish parent company.

The job reductions are expected to be carried out within the current year. O2’s financial strain follows the loss of its largest wholesale customer, when 1&1 shifted from using O2’s network to Vodafone in 2024, resulting in the migration of about 12 million mobile customers and a drop in revenue. The German mobile market is described as saturated, with operators competing on network quality; O2’s 4G coverage reaches 88.6 % of the country and 5G covers 76.2 %, lagging behind rivals Telekom and Vodafone.

Union representatives argue that the speed of the cuts – “a crazy pace” – creates uncertainty among staff, while O2 has not disclosed a detailed future business model for its German operations.