United Internet to cut 800 jobs at 1&1 and IONOS

United Internet AG has announced a major restructuring program involving its subsidiaries 1&1 and IONOS, resulting in approximately 800 job cuts. The company aims to increase efficiency and reinvest savings into artificial intelligence and cloud services.

At 1&1, the restructuring focuses on its business customer subsidiary, Versatel. The workforce there is expected to decrease from roughly 1,350 to 1,000 full-time positions. This move is intended to simplify management structures and optimize IT processes, with an estimated one-time cost of 60 million euros in 2026.

IONOS plans to reduce its staff by about 450 positions, bringing its total headcount from 3,800 down to approximately 3,350. The company intends to use these savings to accelerate the development of AI-driven products and expand its cloud business. IONOS expects one-time restructuring costs of 35 million euros in 2026.

Overall, United Internet anticipates total one-time restructuring expenses of approximately 95 million euros for the 2026 fiscal year. Despite these costs, the group has maintained its operative EBITDA forecast of approximately 1.45 billion euros and its revenue target of 6.45 billion euros. The company expects the programs to yield annual cost savings of around 55 million euros once fully implemented.