Monday, July 24th, mobile operator Virgin Media O2 announced plans to lay off 2,000 employees by July 2024. This announcement puts the company on the list of telecommunication companies that have announced layoff plans such as BT and Vodafone.
Previously, BT announced that it will eliminate 55,000 roles by 2030 – which equates to 40% of its workforce. Vodafone also announced layoffs of 11,000 jobs across the globe over the next three years. This decision was driven by the forecasted drop in the free cash flow of the company of 1.5 billion euro.
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More on the Virgin Media O2 Layoff
According to reports, Virgin Media O2 warned certain employees yesterday that they face the possibility of being laid off and informed trade unions of the changes.
More than a tenth of the employees at the telecoms company will be laid off as a result of the job losses, which also include restructuring that was previously disclosed to employees.
As covered by Sky News, a spokesperson from Virgin Media O2 stated, “As we continue to integrate and transform as a company, we are currently consulting on proposals to simplify our operating model to better deliver for customers, which will see a reduction in some roles this year.
“While we know any period of change can be difficult, we are committed to supporting all of our people and are working closely with the CWU and Prospect along with our internal employee representatives as we have open and honest conversations on the future direction of our business.”
CEO Philip Jansen informed investors that he anticipated the replacement of 10,000 jobs using AI technology.
Following a joint venture in 2020 between Spain’s Telefonica and the US-listed Liberty Group, Virgin Media O2 was born.
After concerns that the mobile provider was making it challenging for customers to discontinue services, Ofcom started an investigation into the company earlier this month”.
Reactions to the News
In reaction to a post on Twitter made by the BBC, the public has expressed their concerns. Through the platform, several individuals have expressed their disappointment in the service provided by Virgin Media O2, which reflects the repeated complaints made to Ofcom.
On Twitter, an individual with the username of @AWG1 said, “VM put my contract up 33% earlier this year. I left immediately. I asked each of their call centre staff if they were getting a pay rise, and they all said no. (Where was the 33% going).
Feel really bad for the few good staff but most of their engineers and call staff are terrible”.
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Further, another user tweeted, “They are disgusting profiteers, they literally put up my contract by 35% and have done the same to every other customer, and are now asking staff on the back of huge their huge greed”.
The recent announcement by Virgin Media O2 to lay off 2,000 employees by July 2024 reflects a concerning trend in the telecommunications industry. This decision places them alongside other major players like BT and Vodafone, who have also announced significant job cuts in response to financial challenges. The integration and transformation of companies due to joint ventures and changing market dynamics have contributed to the restructuring and job losses. While the industry seeks to leverage AI technology for efficiency gains, the human cost of these developments cannot be overlooked. The public’s reactions on social media highlight concerns about service quality and pricing, signalling a need for increased transparency and accountability within the sector.