Swinging changes at Virgin Media O2 will see thousands of job cuts and a halt to investment in further fibre upgrades beyond its existing commitments to partners.<\/p>\n
![\"\"](\"https:\/\/www.thebusinessdesk.com\/_files\/images\/nov_23\/Lyssa-McGowan-3-475x317-1-300x200.jpg\")
Lyssa McGowan<\/p><\/div>\n
The cuts are being made throughout the business, including at Executive Committee level where Consumer CEO, Lyssa McGowan, who joined recently after a turbulent year as CEO of Pets at Home, will bring together the previous commercial and operations areas of the business under her leadership.<\/p>\n
Lutz Sch\u00fcler, CEO of Virgin Media O2 insisted the business \u201cmust evolve\u201d, and said \u201cthe action needed to make that happen starts now.\u201d<\/p>\n
In its latest results the business lost 23,300 broadband and 7,800 consumer mobile customers in the quarter to the end of September.<\/p>\n
The cuts will shave \u00a3800 million of costs from the business by 2029, with around \u00a3400 million delivered in 2027. Approximately \u00a3300 million of the saving is expected to come from a reduction in the size of the workforce, which equates to roughly 30% of the company\u2019s total people costs over the next two years.<\/p>\n
Further reductions will occur across the wider business, with proposals subject to consultation, the company said. Conversations with those impacted will take place “fairly and respectfully, and Union representatives will continue to be briefed as these plans develop,” the company said in a statement.<\/p>\n
On the halt to fibre investment, the company said: \u201cMarket economics do not support three overlapping fibre networks, and the company\u2019s HFC network will continue to deliver market-leading broadband at scale, with a low-cost upgrade being deployed to bring 2Gbps services to the majority of the network in 2027.\u201d<\/p>\n
![\"\"](\"https:\/\/www.thebusinessdesk.com\/_files\/images\/dec_25\/VMO2-Manchester_Island-1-e1765875748909-300x200.jpg\")
Virgin Media O2 offices in Manchester<\/p><\/div>\n
In December 2025, the company officially opened its new, modern North West HQ in central Manchester, which supports around 1,100 of its staff, and a spokesperson told TheBusinessDesk.com there are no changes to office locations and: “our Manchester site will remain a key hub”.<\/p>\n
The company signed a 10-year agreement to take around 50% of the newly built Island site on John Dalton Street, where a \u201cmulti-skilled customer service team\u201d is based.<\/p>\n
At the time, Virgin Media O2 described the office as \u201cmodern, future-proof space for its people to meet and collaborate in the North West, consistent with the company\u2019s flexible working policies.\u201d<\/p>\n
Where any future fibre investment takes place, it will only be in areas where altnet providers don\u2019t operate. The company said it is also exploring wholesale arrangements to support the expansion of its services in areas not covered by Virgin Media O2 or partnering networks.<\/p>\n
Lutz Sch\u00fcler, CEO of Virgin Media O2, said: \u201cThe direction we\u2019re setting today paves the way for the next chapter of Virgin Media O2: a company that will be leaner, clearer on priorities and faster in delivery, with brilliant brands and an unwavering focus to get back to what really makes a difference to our customers. Given the market conditions we face, the regulatory backdrop in fibre and the technological changes sweeping across all areas of the economy, standing still and doing what we\u2019ve always done is not an option and while many of these decisions are tough, they are necessary for our future success and growth.<\/p>\n
\u201cWhile we will give a fuller update on the new strategic plan in the coming months, we are already progressing and making difficult decisions to prioritise investments and reduce costs which includes the size of our workforce. This is not something I take lightly but my commitment to our people is that for those leaving we will treat them fairly and with respect, and for those staying we will work differently, but as one team, to get back to winning again. Virgin Media O2 must evolve, and the action needed to make that happen starts now.\u201d<\/p>\n
The company said it will provide further details on its strategic plan around the time of its full year results.<\/p>\n","protected":false},"excerpt":{"rendered":"
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