Munich, July 22, 2026: Job cuts at O2 will affect up to 1,100 full-time positions in Germany by the end of the year. This means the loss of approximately one in six of the 6,820 full-time roles that existed previously. In addition, Telefónica Deutschland is closing around 60 of its own stores; however, franchise outlets will remain open. The company attributes the restructuring to a saturated mobile market, increased digitalization, and the use of artificial intelligence. At the same time, revenue is being lost due to major client 1&1 switching to Vodafone. The trade union Verdi is therefore warning of potential negative impacts on advisory services and customer support.
Job cuts at O2 to be voluntary
Management and employee representatives have agreed on a voluntary program for a large portion of the reductions. Consequently, employees can receive severance payments and other offers for voluntary departure. In addition, social criteria are to be taken into account during the selection process.
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Telefónica Deutschland anticipates costs of around €265 million for the first phase of the restructuring. The group is setting aside a provision for this in the second quarter. Additional measures could cost up to another €155 million. From 2028 onwards, both cost-cutting stages are expected to reduce annual expenditure by approximately €185 million.
Loss of 1&1 business weighs on results
For years, 1&1 relied on the O2 network to serve millions of mobile customers. However, the provider has been gradually switching to the Vodafone network. As a result, Telefónica Deutschland is losing significant revenue generated from business with other providers.
Consequently, revenue fell by 8.6 percent to around €1.9 billion in the first quarter of 2026. Adjusted operating profit also declined sharply. Furthermore, O2 gained only 48,000 new mobile contract customers; in each of the four preceding quarters, the company had added more than 150,000 customers.
Further cuts planned for customer service
However, the job cuts at O2 will not end with the measures scheduled for 2026. A second restructuring phase is set to begin in 2027. By 2028, the company plans to further reduce capacity in sales and customer service. Specific locations and figures have not yet been determined.
The trade union Verdi therefore fears the closure of additional call centers and a reduction in opportunities for in-person consultations. Yet, older customers in particular often require direct assistance with tariffs, devices, and digital services. Consequently, the job cuts at O2 could not only affect employees but also impair accessibility for customers.
Author: Blackout News
Sources: Telefónica Deutschland (22.07.26) – ntv (22.07.26) – Cincos Dias (22.07.26) – Welt (23.07.26) – rbb2 (23.07.26)