Virgin Media O2 to cut thousands of jobs, Sky News reports

Virgin Media O2 to Reduce Workforce by Thousands in Major UK Restructuring

Major Job Cuts and Cost Reduction Efforts at Virgin Media O2

Overview of the Restructuring

Oct 31 (Reuters) - British telecoms operator Virgin Media O2, which is jointly owned by Liberty Global and Spain's Telefonica, will cut thousands of jobs in a sweeping shakeup, Sky News reported on Saturday, citing people close to the company.

Scale and Impact of Job Cuts

• Up to 4,000 of Virgin Media O2's 16,000 employees could be affected, although the precise number of job cuts has yet to be finalised, the report said

Roles Most Affected

• Most of the job cuts are expected to affect non-customer-facing roles, while a number of senior leadership changes are already under way, the report said

Company Response

• Virgin Media O2 declined to comment on the report

Additional Cost-Cutting Measures

• The company is also expected to review usage of contractors and suppliers in an effort to reduce costs, the report said

Financial Context

• The Financial Times reported in July that VMO2's owners were weighing options to reduce the company's £22 billion ($29.46 billion) debt pile

• In September, the Financial Times reported Virgin Media O2’s shareholders were seeking to reduce costs by about £600 million

Exchange Rate Information

($1 = 0.7468 pounds)

Reporting Credits

(Reporting by Angela Christy in Bengaluru; Editing by Joe Bavier)