Virgin Media O2 plans to cut thousands of jobs, according to the BBC. The broadband provider has not finalised how many roles will go, but the BBC understands the cuts are likely to be a sizeable share of its 16,000-strong workforce.
The company has £27.2bn of debt and holds assets worth £45.9bn, according to its latest accounts as of 30 June. It faces competition from cheaper "altnets" such as Hyperoptic, Community Fibre, Gigaclear and YouFibre, as well as from BT, which has regulatory permission to acquire TalkTalk.
VMO2 declined to comment. The Prospect union, which represents VMO2 staff, called the cuts "disappointing and very unsettling." Deputy general secretary Noel McClean said the union is "committed to supporting our members through what is a difficult time," and will work with employers "to explore ways to mitigate the number of redundancies."
The BBC has been told most affected staff will work in non-customer-facing roles. Senior leadership changes are already under way. VMO2 is also expected to review its use of contractors and suppliers, according to the BBC. Sky News first reported the job cuts.
Separately, the Financial Times reported that VMO2 is close to agreeing a deal to use BT's fibre broadband network. 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. BT's share price rose 7% on the Financial Times report.