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- Telefónica is planning to cut around 1650 full-time positions by 2028 – almost 50 percent more than previously announced publicly.
- An additional 550 job cuts are planned for 2027 and 2028. This second phase is still being described internally as “provisional”.
- The O2 parent company internally estimates the cost of the conversion at 427 million euros.
The job cuts at Telefónica are likely to be significantly more extensive than previously known: The mobile network operator is reportedly planning to eliminate around 1,650 full-time positions by 2028.
Previously, the company, which operates in Germany under the O2 brand, had only announced the elimination of up to 1,100 full-time positions by the end of 2026. The aforementioned internal document, marked “secret,” reveals significantly higher figures: a total of 1,650 positions are to be cut compared to the workforce in January 2026 – 50 percent more than officially communicated.
However, the additional cuts amounting to 550 full-time equivalents for the years 2027 and 2028 would still be marked “provisional” in the documents.
Two insiders have confirmed the figures, according to the Handelsblatt newspaper. The company internally estimates the total restructuring costs at 427 million euros.
Telefónica management under pressure
Santiago Argelich Hesse took over as CEO of Telefónica at the beginning of 2026, replacing long-time CEO Markus Haas. His task: to stabilize the network operator during a financially challenging period.
A Telefónica spokesperson told the Handelsblatt newspaper that the company is undergoing a transformation “with which we aim to secure our competitiveness and future viability in the long term.” Out of respect for employees and partners, they declined to comment on “individual measures, potential impacts, or timelines.”
Telefónica plans to close around 60 of its own shops.
According to the Handelsblatt newspaper, the cost-cutting plans also affect sales and customer service. Telefónica had already announced plans to close around 60 of its own stores. Internal documents indicate that the total number of company-owned and partner-operated shops is to be reduced by approximately 200, as reported by the Handelsblatt.
In customer service, approximately 170 full-time positions could be eliminated in 2026, with a further 180 reductions possible in 2027 and 2028. Around 220 job cuts are planned for the retail stores in 2026, with another 110 potentially following in the next two years. Cross-departmental functions for stores, service centers, and online channels are also expected to be affected.
According to internal documents, the restructuring is expected to generate approximately €185 million in additional adjusted operating profit annually for Telefónica starting in 2028 and pay for itself within 2.3 years. Of the total estimated restructuring costs of €427 million, around €400 million are earmarked for personnel-related measures. The cost-cutting measures are reportedly causing considerable unrest among the workforce. Insiders criticized CEO Santiago Argelich Hesse for focusing too heavily on cost reductions, while the company, following the departure of 1&1, primarily lacks additional customers and a clear strategy.