VIRGIN MEDIA O2 jobs could be at risk as shareholders are looking to cut £600million in costs in a bid to calm investors worried about the company’s debt.
Owners Liberty Global and Telefónica want to cut costs by axing jobs and reducing operating and capital expenditure, it is understood.
It has not yet been confirmed how many jobs could be at risk.
The news comes after the company was shaken by a sell off of its bonds over the summer.
As a result, investors were worried about its ability to service a £22billion debt pile as it battled a wave of competition from smaller fibre networks.
The sell off put pressure on the company’s £1.1billion senior unsecured debt, which pushed the price of a $925million bond down to 61 cents on the dollar yesterday.
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In comparison, the bond had been trading at about 78 cents at the start of July.
As a result, the company’s two owners are weighing up options to reduce its debt, according to the FT.
It is also considering cutting its £”00million dividend, which is a payment of a company’s profit that is given to shareholders.
But insiders have confirmed to the FT that no formal proposals have yet been put to Virgin Media O2.
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The company, which has 5.5million UK customers, has suffered losses due to the rise of smaller broadband companies, called altnets.
These firms have caused Virgin to lose 33,500 broadband customers in the first half of 2026, in addition to the 138,400 it lost last year.