Virgin Media O2 to axe thousands of jobs as it cuts costs to battle £22billion debt

Thousands of employees at Virgin Media O2 are set to be out of a job as the telecoms giant has been drowning in £22billion debt.

In a bid to cut costs, it is said Virgin Media O2 could axe as many as 4,000 jobs – a hefty 25 per cent of its 16,000-strong workforce, according to Sky News.

The majority of staff who could lose their jobs are said to be in non-customer-facing roles. 

While changes to several senior leadership roles have already began to take effect.

They will reportedly also be reviewing its contractors and suppliers as another avenue of where they can save costs.

The redundancies are said to be looming in the months ahead as the media company, jointly owned by Liberty Global and Telefonica, have been drawing up plans.

Its third-quarter results next Tuesday will confirm a cost-cutting target which will be focused around a financial decision rather than deciding a specific headcount.

‘The final numbers on cost reduction are still moving around,’ a source told Sky.

It is understood Trade union officials at the CWU and Prospect have already been informed of the plans. 

The price of its bonds plummeted earlier this month and hit record lows.

It came after the UK’s Competition and Markets Authority (CMA) said their plan for a  joint venture with Nexfibre Networks to acquire Netomnia Ltd could lead to reduced competition in the UK broadband market.

If the deal goes ahead, Virgin Media O2 could get £1billion cash to help with its debt. The CMA is due to make its final ruling on the deal December 15th.

Virgin Media O2 has been contacted for comment.