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Virgin Media O2 faces customer losses, cost cuts and fierce competition
Virgin Media O2 is under growing pressure after losing customers, announcing major cost savings and shelving plans to upgrade its cable network to full fibre. The company’s leaders say it is not in crisis, but the retrenchment has raised questions about whether it can compete effectively in a crowded UK telecoms market.
The company has lost 182,000 broadband and 644,000 mobile customers over two years, though its total customer numbers remain above their level at the 2021 merger. Competition from around 100 alternative fibre providers and BT has put pressure on prices and profits, while critics cite weak execution and customer-service failures, including an £28m Ofcom fine. Virgin Media O2 has announced £800m in savings, which could include cutting up to a quarter of its 16,000 UK jobs, and faces scrutiny over its £22bn debt.
In short
- Virgin Media O2 has lost hundreds of thousands of customers.
- £800m in savings could mean cuts to a quarter of its workforce.
- Competition and execution problems are adding pressure to its £22bn debt burden.
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Originally published by The Guardian as “Job cuts, lost customers and a £22bn debt pile: what has gone wrong at Virgin Media O2?”.