O2 Telefónica Plans Over 1,000 Job Cuts in Germany

O2 Telefónica, the German mobile operator, is planning significant job cuts, intending to eliminate more than 1,000 positions as part of a comprehensive transformation strategy.

The company stated it is undergoing a transformation to secure its long-term competitiveness and is discussing various measures with employee representatives. While O2 Telefónica declined to provide further details, sources indicate that the job losses could affect between one in six and one in seven employees. As of January, the company employed 6,820 people.

These planned reductions come after O2 Telefónica lost its largest customer, 1&1. For years, 1&1 had used O2's network, but in 2024, it unexpectedly switched to competitor Vodafone. This transition resulted in approximately 12 million mobile customers being migrated from the O2 network to Vodafone's by the end of 2025, significantly impacting O2's revenue and operating profit.

In 2025, O2 Telefónica's revenue decreased by 3.8% to 8.2 billion euros, and its adjusted operating profit (EBITDA) fell by 8.8% to 2.5 billion euros. The first quarter of the current year showed no improvement. The company also sells fixed-line internet contracts but this business is secondary as it relies on competitors' infrastructure.

These market challenges contributed to a leadership change, with former CEO Markus Haas stepping down at the end of 2025. His successor, Santiago Argelich Hesse, is tasked with restructuring the company and expanding its corporate customer business. The executive board has also been reduced from seven to six members, seen as a cost-saving measure.