Telefónica Alemania to Cut Up to 1,100 Jobs by End of 2026

Telefónica Alemania, the German subsidiary operating under the O2 brand, announced it will cut up to 1,100 full-time jobs by the end of 2026, affecting approximately 16% of its 6,820-strong workforce. Source: lavanguardiaSource: infobae

• The majority of job reductions will be achieved through a voluntary exit program agreed with worker representatives, including severance packages and alternative job offers. Source: lavanguardia
• The company also plans to close 60 of its 800 O2 retail stores (8%) by the end of this year. Source: infobae
• Restructuring costs are estimated at 265 million euros, with provisions taken in the second quarter of 2026. Source: lavanguardia
• CEO Santiago Argelich Hesse stated the measures aim to ensure competitiveness and simplify the organization, including increased use of AI in core processes. Source: lavanguardia

The restructuring follows the loss of a major client, 1&1, which switched to Vodafone's network in 2024, transferring about 12 million customers. Source: lavanguardia Additionally, the German telecom market faces saturation, intense competition, heavy regulation, and the growing impact of artificial intelligence. Source: lavanguardia Further cost-cutting measures are expected in 2027, with additional provisions of 155 million euros allocated, targeting annual savings of 185 million euros from 2028. Source: lavanguardia