O2 Telefónica Germany to cut 1,100 jobs and close 60 shops amid revenue slump

O2 Telefónica Germany job cuts shop closures revenue decline 1&1 loss

Telefónica Deutschland, operating the O2 brand, reported that second‑quarter 2026 revenue fell 11.1% year‑on‑year to roughly €1.8 billion and EBITDA dropped 7.2% to about €0.6 billion. The decline follows the loss of its large wholesale customer 1&1, which shifted around 12 million mobile lines to Vodafone by the end of 2025, reducing O2’s cash flow.

New chief executive Santiago Argelich Hesse, appointed at the start of 2026, launched a cost‑saving programme that will eliminate up to 1,100 full‑time positions – roughly one sixth of the 6,820 employees recorded at the start of the year – through voluntary early retirement, severance and other measures. About 60 of O2’s 800 retail shops will be closed, with a second phase planned for the following year to trim call‑centre and sales costs.

The company remains optimistic that revenue and operating results will recover, targeting growth from 2027. Contract‑based mobile customers grew by 30 000 in the quarter to around 32 million, while sales of smartphones and other devices fell by roughly 25%.

Entities: 1&1 · Markus Rolle · O2 · O2 Telefónica Germany · Rothesütte · Santiago Argelich Hesse · Telefónica Deutschland · Vodafone

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 4 SOURCES] O2 plans to cut up to 1,100 full‑time jobs, roughly one‑sixth of its 6,820 employees. (company restructuring plan)
[○ 1 SOURCE] O2 expects to generate annual cost savings of about €185 million starting in 2028. (transformation programme details)
[● 4 SOURCES] Around 60 of O2's 800 retail shops will be closed. (company restructuring plan)
[● 4 SOURCES] O2 Telefónica Germany's Q2 2026 revenue fell 11.1% year‑on‑year to about €1.8 billion. (company report)
[● 4 SOURCES] Contract‑based mobile customers grew by roughly 30,000 in Q2 to about 32 million. (company report)
[● 4 SOURCES] The loss of large wholesale customer 1&1 caused about 12 million mobile customers to be transferred to Vodafone by the end of 2025. (company statement)
[● 4 SOURCES] Santiago Argelich Hesse became CEO of O2 Telefónica Germany at the start of 2026. (company appointment)
[● 4 SOURCES] O2's Q2 EBITDA dropped 7.2% to roughly €0.6 billion. (company report)