O2 Telefónica plans to eliminate up to 1,100 full-time positions in Germany by year-end, representing roughly one in six of its 6,820 employees as of January 2026. The restructuring will also shutter 60 of its own retail shops, reducing the O2 store network to approximately 740 locations.
The company expects restructuring costs of 265 million euros, with further cuts targeted at call centres in 2027 backed by provisions of up to 155 million euros. O2 Telefónica aims to reduce annual costs by roughly 185 million euros from 2028.
New chief executive Santiago Argelich Hesse, who succeeded Markus Haas in early 2026, oversees the cuts as the company absorbs the loss of key client 1&1 to rival Vodafone in 2024.