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Job cuts at O2 Telefónica: Union accuses company of lacking direction
🇩🇪 Germany /Economy & Trade

Job cuts at O2 Telefónica: Union accuses company of lacking direction

From Die Zeit · () German

Translated from German, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • O2 Telefónica plans to cut over 1,000 jobs in Germany, representing about one-sixth of its workforce.
  • The Verdi union criticizes the move as a poorly planned cost-saving measure by the Spanish parent company.
  • Job losses are attributed to the loss of a major customer, 1&1, and a saturated German mobile market.

Telecommunications provider O2 Telefónica is planning significant job cuts in Germany, aiming to eliminate more than 1,000 of its 6,820 positions. This move, which would eliminate roughly every sixth job, has drawn sharp criticism from the Verdi trade union.

We are exploring various measures to secure long-term competitiveness.

— O2 Telefónica spokespersonThe company stated it is examining options to ensure its future viability.

Verdi secretary Christoph Heil expressed concern that the layoffs are primarily a cost-saving measure dictated by the Spanish parent company, Telefónica S.A., without a clear strategy for the German subsidiary's future development. "We fear this is purely a savings program ordered by the Spanish parent company, without a clear plan for how the company can develop positively in Germany," Heil told the German Press Agency.

We fear this is purely a savings program ordered by the Spanish parent company, without a clear plan for how the company can develop positively in Germany.

— Christoph HeilVerdi trade union secretary Christoph Heil criticized the planned job cuts.

Heil, who is also on Telefónica Deutschland's supervisory board, lamented the lack of a defined future vision for the company and its various divisions. "The goal for the future of the company is still unclear," he stated, adding that the planned restructuring creates significant uncertainty for employees. The union also criticized the rapid pace of the planned job cuts, with most expected to occur within the current year.

The goal for the future of the company is still unclear.

— Christoph HeilHeil expressed concern about the lack of a clear vision for Telefónica Deutschland.

The company's financial performance has been impacted by the loss of its largest customer, 1&1, which migrated its approximately 12 million mobile customers to Vodafone by the end of 2025. This loss has led to a decline in O2's revenue and operating results. Compounding these challenges is the saturated German mobile market, where price increases are difficult to implement and differentiation among providers is increasingly challenging, despite significant investments in network expansion.

Everything is to be turned upside down - but what exactly that means for the employees is completely unclear.

— Christoph HeilHeil highlighted the uncertainty faced by employees due to the planned restructuring.
DistantNews Editorial

Originally published by Die Zeit in German. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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