O2 Telefónica Plans Job Cuts in Germany: Verdi Criticizes Lack of Strategy

The Verdi union reacted with sharp criticism. Verdi union secretary Christoph Heil told the German Press Agency in Munich: "Wir fürchten, dass es um ein reines Sparprogramm geht, das vom spanischen Mutterkonzern angeordnet ist - ohne dass es einen genauen Plan gibt, wie sich das Unternehmen in Deutschland positiv weiterentwickeln kann". Heil is a member of the supervisory board of Telefónica Deutschland.

Heil also criticized the pace of the announced changes. "Es soll alles auf den Kopf gestellt werden - aber was genau das für die Beschäftigten heißt, ist völlig unklar", he criticized. This fuels uncertainty among the workforce. The union representative also lamented the lack of a strategic vision: "Noch immer liegt kein Zielbild des künftigen Unternehmens vor".

Union Criticism: Pace Without Direction

The job cuts are set against the backdrop of a significantly worsened business situation. O2 Telefónica lost its largest customer in 2024, when competitor 1&1, a subsidiary of the United Internet group, surprisingly switched from O2 to Vodafone. By the end of 2025, around 12 million mobile customers had been transferred from the O2 network to the Vodafone network. As a result, the company's revenues and operating profit slumped.

Competitive pressure in the German mobile market is also increasing. The industry is considered saturated: consumers largely already have sufficient mobile phones, and significant tariff increases are difficult to push through. At the same time, network expansion and network improvements are devouring billions of euros that are becoming increasingly difficult to recoup.

In terms of network coverage, O2 Telefónica trails Deutsche Telekom, though it has recently narrowed the gap. According to the Federal Network Agency, O2 Telefónica reached 88.6 percent of Germany's area with its 4G network and 76.2 percent with 5G in December. Deutsche Telekom reaches 92.5 percent (4G) and 87.9 percent (5G), while Vodafone reaches 91.7 percent (4G) and 75.7 percent (5G).

Network Expansion in Competitive Comparison

O2 Telefónica's workforce planning thus comes at a phase in which the company must simultaneously invest billions in further network expansion in order not to fall further behind in the competition. Whether the now-announced cuts are tied to a long-term investment and growth strategy has not been disclosed by the company side upon request.

Verdi announced that it would critically accompany the process. Heil pointed out that many employees had been waiting for months for information on what the restructuring would concretely mean. Should the suspicion of a pure cost-cutting program without a development perspective harden, the union did not rule out further resistance.

According to circles, the planned job cuts are to be largely carried out this year. O2 Telefónica employs around 6,820 staff in Germany according to the latest known figures, distributed across several locations, including Munich.