Montabaur, September 10, 2026: United Internet is launching a major workforce reduction at its subsidiaries IONOS and 1&1 Versatel. A total of approximately 800 full-time positions are set to be cut, with around 450 jobs affected at IONOS and about 350 at Versatel. The companies aim to simplify structures, consolidate technical platforms, and increase process automation. At IONOS, artificial intelligence is also expected to take over a greater share of internal workflows. Consequently, the group anticipates one-off restructuring costs of around 95 million euros, with projected annual savings of approximately 55 million euros thereafter. However, the actual figure for IONOS will also depend on participation in voluntary redundancy programs.
United Internet to cut more than a quarter of jobs at 1&1 Versatel
1&1 Versatel plans to reduce its full-time workforce from around 1,350 to approximately 1,000, resulting in the loss of more than a quarter of its current positions. At the same time, management layers are to be eliminated and organizational structures simplified. Versatel also intends to realign its processes and IT systems. Previously agreed-upon phased retirement schemes are set to complement the workforce reduction, and the company plans to negotiate an additional voluntary redundancy program with employee representatives.
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1&1 anticipates one-off costs of around €60 million for the restructuring at Versatel. However, starting in 2028, the program is expected to generate annual savings of approximately €25 million. With this move, United Internet is also altering the cost structure of a major German fiber-optic network operator. Versatel currently operates a fiber-optic network spanning more than 70,000 kilometers. Additionally, the company possesses its own network infrastructure in over 350 cities.
IONOS to cut 450 jobs and focus more on AI
At IONOS, the workforce is set to shrink from around 3,800 to approximately 3,350 full-time employees. The planned job cuts will be split roughly evenly between Germany and international locations. IONOS intends to rely primarily on voluntary redundancy programs. Furthermore, technical platforms are to be standardized and processes consolidated. Artificial intelligence is to be integrated more consistently into internal operations moving forward.
The restructuring is expected to cost IONOS around €35 million. However, the company anticipates annual savings of up to €30 million starting in 2027. United Internet is explicitly linking the workforce reduction to further investments; IONOS plans to allocate a portion of the freed-up funds to new AI products. Additionally, the cloud business is set to be further expanded.
Job cuts despite rising revenue and profits
The restructuring is not being driven by a slump in group revenue. In fact, United Internet increased its revenue by 3.3 percent to €3.09 billion in the first half of 2026. EBITDA also grew by 5.1 percent to €676 million. IONOS also performed well, with half-year revenue rising by 6.9 percent to €701.1 million. At the same time, the customer base grew by around 280,000 to 6.91 million.
By contrast, 1&1 saw weaker customer growth. Around 140,000 contracts were lost in the first half of the year, primarily in the mobile business. Nevertheless, the group is sticking to its revenue forecast. United Internet continues to expect revenue of around €6.25 billion for 2026. The forecast for operating EBITDA also remains at approximately €1.45 billion. The company is treating the restructuring costs as a one-off special item.
Author: Blackout News
Sourcesn: United Internet (11.09.26) – IONOS (10.09.26) – 1&1 Versatel (10.09.26) – Handelsblatt (10.09.26)