O2 Telefónica announces cut of roughly every sixth job in Germany

Branch network also shrinking

An additional cut affects the branch network: the number of currently around 800 O2 Shops is also expected to fall by 60 by the end of the year. The impact concerns company-owned locations and not the locations of franchise partners.

Loss of 1&1 as the trigger

The background to the austerity course is the loss of major customer 1&1. O2 Telefónica had lost its largest customer: For years, 1&1 used the O2 network and paid rent for it — meanwhile, the company, with its 12 million mobile customers, has switched to competitor Vodafone.

The move hits O2 in an already fiercely contested market. According to the Federal Network Agency, O2 Telefónica reached 88.6 percent of Germany's area with its 4G network in December. Telekom's coverage stands at 92.5 percent (4G) and 87.9 percent (5G). Vodafone posts 91.7 percent for 4G and 75.7 percent for 5G.

Change at the top of the company

O2's main business is mobile communications. The company does also sell fixed-line internet contracts, but for that it uses competitors' networks — fixed line is more of a side business for O2.

In terms of personnel, a change is already in store at Telefónica Deutschland: long-time company chief Markus Haas took his leave at the end of last year. At the beginning of 2026, the German-Spaniard Santiago Argelich Hesse, who is now responsible for the restructuring, takes over the helm.

Next year, the cuts and cost reductions are set to continue. The company wants to „bedarfsgerecht weiter verschlanken" (continue to streamline the organization as needed) the organization by 2028, according to Munich. This means the job cuts announced now are part of a multi-year restructuring program.

O2 Telefónica is a subsidiary of the Spanish Telefónica group. The company declined, on request, to initially specify which locations and areas will be concretely affected by the measures now announced.