TELEFONICA SA

The German subsidiary O2 Telefónica reported an 11.1 percent drop in revenue to around €1.8 billion in the second quarter and an EBITDA decline of 7.2 percent to about €0.6 billion, mainly due to the loss of major customer 1&1. In response, management is launching a strict cost-cutting program with around 1,100 job cuts (about one in six positions) and the closure of 60 shops; further cost reductions are planned for 2027. The management expects revenue and operating profit to recover next year, while contract customer numbers and the machine-SIM business were able to increase slightly. » Altro su finanzen.net

O2 Telefónica announces in Germany it will cut up to 1,100 full-time positions (as of January: 6,820) and plans to close about 60 of its roughly 800 own shops by year-end. The restructuring will incur a one-time cost of about €265 million; up to €155 million in provisions will be set aside for a second round of savings; from 2028 annual costs are expected to fall by about €185 million. Measures include voluntary severance packages, increased use of AI, and cuts in call centres and sales; further reductions are planned through 2028. The background includes the loss of the major customer 1&1, which reduced O2’s revenues and made personnel and leadership adjustments necessary. » Altro su wiwo.de

According to information, more than 1,000 of around 6,820 positions at O2 Telefónica are to be eliminated, meaning roughly one in six jobs would disappear. Verdi faults the lack of a clear vision and criticizes the cuts as seeming like a pure cost‑saving program by the Spanish parent company without a clear development plan for Germany. The company is examining various measures to secure competitiveness; most of the reductions are planned to take place this year. The background includes declines in revenue and earnings after losing the major customer 1&1 and a saturated German mobile market that makes it difficult to monetize network investments. » Altro su sueddeutsche.de