Telefónica’s German subsidiary is set to cut more than 1,000 jobs.

As reported by Handelsblatt, the telco plans to axe a major part of its 6,820 workforce.

The newspaper notes that the telco is currently examining “various measures” to ensure its long-term competitiveness.

O2 is counting the cost of losing its biggest customer in Germany, 1&1, in 2024, with the company instead signing a network agreement with rival Vodafone. Reports have since suggested that O2 was looking to rebuild relations with United Group-owned 1&1.

O2’s parent company Telefónica has cut thousands of jobs over the past decade, reducing its overall headcount by 20,000 during this period. A report last year suggested that a further 4,000-5,000 layoffs were being considered.

The planned job cuts in Germany have been criticized by some of the country’s trade unions.

“We fear that this is purely a cost-cutting program ordered by the Spanish parent company – without any concrete plan for how the company can develop positively in Germany,” said Christoph Heil, union secretary, ver.di, to the German Press Agency.

Heil addeded that the telco has not communicated with its staff over the cuts.

“There’s still no vision for the future of the company,” he adds. “Everything is to be turned upside down – but what exactly that means for the employees is completely unclear.”

DCD has contacted O2 Germany for comment.

Globally Telefónica employs more than 82,000 people across Spain, Brazil, Germany, and the UK.

The company is focusing its business on these core markets, having exited several Latin American countries in the past 18 months.