German union warns O2 job cuts will harm customer service

The German trade union Verdi has strongly criticized O2 Telefónica's extensive cost-cutting plans, warning that significant job losses and shop closures could severely impact customer service quality. Christoph Heil, a Verdi union secretary and member of Telefónica Deutschland's supervisory board, told dpa that many shops may close and call centers could be shut down or drastically scaled back.

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Many shops are to be closed, call centers could be shut down or their jobs significantly reduced - the quality of customer service could suffer as a result.

"The cost reductions come at the wrong time," Heil stated. He emphasized that in an aging society, the need for personal advice on digital services and modern devices is increasing. Instead of strengthening customer service and differentiating O2 through quality advice, the planned savings will weaken the "excellent work of the employees," he warned. This could make it harder for O2 to retain existing customers and attract new ones.

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The cost reductions come at the wrong time: Personal advice in shops and on the phone is more important than ever.

O2 Telefónica intends to cut up to 1,100 of its 6,820 full-time positions by the end of 2026 and close around 60 of its approximately 800 shops. The company cites the need to secure its competitiveness. This move follows the loss of its largest customer, 1&1, which migrated its approximately 12 million customers to Vodafone, significantly impacting O2's revenue. While competitors Deutsche Telekom and Vodafone are thriving, O2 faces a challenging market position in Germany.

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Instead of strengthening customer service and differentiating O2 through quality advice, the planned savings weaken the excellent work of the employees.

Verdi urges the Spanish parent company, Telefónica, to invest in its German subsidiary to prepare it for competition. However, Heil expressed disappointment, noting a lack of a "sustainable strategy for a better future for O2 Germany" from Madrid. He believes the company should be investing, not simply dictating cost reductions.

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I don't see a sustainable strategy for a better future for O2 Germany so far.