The telecommunications provider O2 Telefónica wants to cut almost one in six jobs in Germany this year. In addition, more jobs are expected to be lost next year. As the subsidiary of the Spanish Telefónica group reports, the number of jobs (full-time equivalents) is expected to fall by up to 1,100 by the end of 2026. A large part of this is to be achieved through voluntary departures, for which the company offers its employees severance pay. At the beginning of the year, O2 Telefónica Deutschland had 6,820 full-time positions.
Read more after the ad
In addition, O2 will close 60 of its approximately 800 stores by the end of the year – all of them its own locations, not franchise partners. The costs of the “operational and strategic realignment” are expected to amount to 265 million euros in 2026.
The aim of the measures is to ensure Telefónica Germany’s competitiveness, says Germany boss Santiago Argelich Hesse: “We are simplifying the organization, bundling activities and intensifying the use of artificial intelligence in central processes.”
The cuts and cost reductions are expected to continue next year. Telefónica wants to “further slim down the organization as needed” by 2028. Then the red pencil will be applied primarily to call centers and sales. According to the announcement, provisions of up to 155 million euros will be created next year for the second round of savings. If both phases of cost reductions have been implemented, annual spending from 2028 should be around 185 million euros lower.
1&1 roaming is missing
The mobile phone provider 1&1 (United Internet) was rented in the O2 network for years. 1&1 now operates its own mobile network and lets its customers roam with Vodafone, outside of its own network coverage. This means that O2 lost a significant amount of income.
According to the Federal Network Agency (BNetzA), O2 Telefónica reached 88.6 percent of Germany’s area with its 4G network and 76.2 percent of its area with 5G in December. The gap to Telekom, whose area coverage is better according to the information, has therefore decreased significantly.
Read more after the ad
Telekom’s coverage is 92.5 percent (4G) and 87.9 percent (5G). Vodafone achieves 91.7 percent for 4G and 75.7 percent for 5G. The 5G mobile network from 1&1 reaches a quarter of all German residences; the editorial team does not have data on the area coverage of 1&1′.
O2’s main business is mobile communications. Telefónica Deutschland uses access lines from other network operators for its landline business. The O2 management is hoping for growth, particularly in convergence products from mobile communications and landlines.
(ds)
