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O2 Telefónica Germany cuts jobs amid revenue slump
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2026-07-29 01:20 UTC → 2026-07-30 01:18 UTC ·
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O2 Telefónica Germany restructuring cuts jobs amid revenue slump
In late July 2026 O2 Telefónica Germany confirmed a restructuring plan first announced on 22 July. The programme will cut up to 1,100 full‑time jobs – about one‑sixth of its 6,820‑person workforce – and shut roughly 60 of its 800 owned stores by year‑end, while franchise outlets stay open. A €265 million reserve covers the first phase, with an additional €155 million earmarked for a second‑phase cost‑cutting round targeting call‑centres and sales functions, aiming for about €185 million in annual operating‑expense savings from 2028 onward. Reductions will mostly use voluntary exit programmes with severance. Management linked the measures Second‑quarter 2026 results showed revenue fell 11.1% year‑on‑year to about €1.8 billion and EBITDA dropped 7.2% to roughly €0.6 billion, reflecting the loss of its former major the wholesale client customer 1&1, now with Vodafone, and which shifted around 12 million lines to Vodafone by the end of 2025. New chief executive Santiago Argelich Hesse, appointed at the start of 2026, launched the cost‑saving programme and remains optimistic about a recovery, targeting growth from 2027. Contract‑based mobile customers rose by 30 000 to around 32 million, even as smartphone and device sales fell by roughly 25%. Management linked the measures to the shift toward AI‑driven, technology‑focused operations. The company operations and highlighted a parallel 5G rollout in the South Harz town of Rothesütte as part of its effort to expand digital access. Rothesütte. Telefónica Deutschland serves roughly 35 million mobile connections, contributing about a quarter of the group’s revenue. Verdi union officials warned that rapid cuts could impair service quality for O2’s roughly 18 million German mobile customers. Network coverage remains at 88.6 % for 4G and 76.2 % for 5G, still lagging the market leader.
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- 2026-07-30 01:18 UTC O2 Telefónica Germany cuts jobs amid revenue slump
- 2026-07-29 01:20 UTC O2 Telefónica Germany restructuring
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