Thousands of jobs at Virgin Media O2 to be cut
The broadband provider has not finalised the number of roles to be axed but it will likely be a sizeable chunk of its workforce, the BBC understands.
Thousands of Virgin Media O2 employees are at risk of redundancy as the telecoms company seeks to cut costs amid billions of pounds of debt and intensifying competition.
The broadband provider has not yet settled on the number of jobs to go, but the BBC understands it is likely to be a substantial share of its 16,000-strong workforce.
VMO2 carries billions of debt on its balance sheet and is facing pressure from both smaller rivals and larger players such as BT, which has been granted regulatory approval to buy competitor TalkTalk, a move VMO2 has strongly opposed.
VMO2 declined to comment. The Prospect union, which represents VMO2 staff, described the cuts as "disappointing and very unsettling".
Deputy general secretary Noel McClean said it is "committed to supporting our members through what is a difficult time, as well as also working with employers to explore ways to mitigate the number of redundancies and ensure retraining and redeployment of staff affected".
Most of the staff affected are expected to be in non-customer-facing roles, and several senior leadership changes are already under way, the BBC has been told.
VMO2 is also expected to examine its use of contractors and suppliers alongside the job cuts, which were first reported by Sky News.
As of 30 June, VMO2's total debt was £27.2bn, while its assets were valued at £45.9bn, according to the company's latest accounts.
At the same time, the company is contending with fierce competition from lower-cost "altnets" such as Hyperoptic, Community Fibre, Gigaclear, and YouFibre.
VMO2 had tried to counter this rising threat by acquiring altnet rival Netomonia for £2bn through nexfibre, a joint venture owned by VMO2's owners.
That deal was blocked by the Competition Markets Authority (CMA), prompting anger from VMO2, especially after the CMA approved BT's takeover of TalkTalk in October.
At the time, VMO2 called the BT takeover a "stitch-up", saying it allowed its rival to "tighten its grip" on the market.
BT said its deal offered "a safety net" for TalkTalk customers, whose broadband provider faced collapse without the takeover.
On Friday, BT's share price rose 7% after the Financial Times reported that VMO2 was close to agreeing a deal.
The paper reported that VMO2 was inclined to proceed with the plans after pausing upgrades and expansion of its own infrastructure to ease concerns about its debt burden.
The BBC has been told the deal is very close and that VMO2 is highly likely to announce it will stop all investment in fibre in its results on Tuesday.