Union Slams O2 Telefónica’s “Planless Cost-Cutting” as 1,000 Jobs Get the Axe
Published on 07/12/2026 at 08:57 | Redaktion boerse-global.de
Germany’s O2 Telefónica will eliminate roughly 1,000 positions from its 6,820-strong workforce by the end of 2026, a move that has drawn sharp criticism from the Verdi union. The union accused management of “planless savings” and said it sees no coherent strategy for the employees who remain. Verdi estimates the telecom operator hopes to save around €100 million through the reductions.
The announcement comes after a brutal blow to the company’s customer base. At the end of 2025, O2 lost its major wholesale client 1&1 to rival Vodafone, costing the company access to roughly 12 million subscribers. The financial toll was immediate: full-year revenue for 2025 fell 3.8 percent to €8.2 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 8.8 percent to €2.5 billion. The share price swung between small losses and gains as investors digested the news.
Job cuts will hit customer service, headquarters, and retail stores hardest. In the retail division, a voluntary redundancy programme is already under way. At the same time, the executive board has been trimmed from seven to six members since Santiago Argelich Hesse took over as CEO at the end of 2025. Verdi argued that shrinking the top table alone does not address the underlying issue: a lack of growth drivers.
Whether the workforce reduction will be enough to keep O2 competitive in a tough market remains an open question. Even union critics acknowledge that cost discipline is necessary, but they insist the company needs a credible plan for future revenue beyond simply cutting heads. Without fresh momentum, the outlook for Germany’s third-largest mobile operator looks uncertain.
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