Severance pay offers at Telefónica: mobile operator O2 is cutting one in six jobs

In addition, the number of currently around 800 O2 shops is also expected to fall by 60 by the end of the year – this affects our own locations and not the locations of franchise partners. The costs of the restructuring are expected to amount to 265 million euros; corresponding provisions will be created.

The measures will ensure the competitiveness and future viability of Telefónica Deutschland, says Germany boss Santiago Argelich Hesse. “We simplify the organization, bundle activities and intensify the use of artificial intelligence in central processes.”

The cuts and cost reductions are expected to continue next year. They want the organization to be “need-based” by 2028 further slim down“, says the company’s statement. Then the red pencil will be given primarily to Call centers and in sales scheduled. Provisions of up to 155 million euros will be created for the second round of savings. Once both phases of cost reductions have been implemented, the company would like to have reduced its annual costs by around 185 million euros from 2028 onwards.

Loss of the largest corporate customer is serious

O2 Telefónica had lost its largest customer: 1&1 used the O2 network for years and paid rent for it, but the company with its 12 million cell phone customers has now switched to its competitor Vodafone. As a result, O2 received significantly less money in its till. Long-time company boss Markus Haas resigned at the end of last year. At the beginning of 2026, the German-Spanish Argelich Hesse took over the helm to get the store up and running again.

According to the Federal Network Agency, O2 Telefónica reached 88.6 percent of Germany with its 4G network and 76.2 percent of the area with 5G in December. The gap to Telekom, whose area coverage is better according to the figures, has thus narrowed significantly. Telekom’s coverage is 92.5 percent (4G) and 87.9 percent (5G). Vodafone has 91.7 percent for 4G and 75.7 percent for 5G. O2’s main business is mobile communications. The company also sells contracts for landline internet, but it uses competitors’ networks – landline is more of a side business for O2.