Munich, July 22, 2026
The telecommunications provider O2 Telefónica plans to eliminate up to 1,100 full-time positions in Germany by the end of the year, cutting roughly every sixth position.
Trigger: Loss of major customer 1&1
As the subsidiary of Spain's Telefónica group announced in Munich, the number of full-time positions is to decrease by up to 1,100 by the end of this year. In January, the company had 6,820 full-time positions. By calculation, this affects roughly every sixth job. Severance packages and other offers are now available to employees to encourage them to leave voluntarily.
The catalyst for the restructuring is the loss of its largest customer: 1&1 had used the O2 network for years and paid rent for it – in the meantime, the company, with its 12 million mobile customers, has switched to competitor Vodafone. As a result, O2 brought in significantly less money. The core business is also under pressure: O2's main business is mobile. The company does sell fixed-line internet contracts, but uses competitors' networks for that – fixed-line is more of a side business for O2.