Telefónica Deutschland job cuts: O2's German operator will cut up to 1,100 jobs and names AI as one lever

Telefónica Deutschland plans to cut up to 1,100 full-time jobs by the end of 2026 and to close about 60 of its O2 shops, and its chief executive lists more use of AI among the changes. In a release on 22 July 2026, the Munich-based operator said the reduction is "a key part" of a transformation programme, and that the new organisation comes against the background of technology leaps such as artificial intelligence and greater complexity in the company. Chief executive Santiago Argelich Hesse said: "We are simplifying the organisation, pooling activities and intensifying the use of artificial intelligence in core processes" (our translation). Most of the cut is to be covered by a voluntary programme agreed with employee representatives. The shop closures are put down to customers moving to digital sales channels. The company booked a EUR 265 million restructuring provision in the second quarter and expects about EUR 185 million a year in savings from 2028, and it plans to slim sales and customer service further through 2028, without a number yet. AI is one of three levers the company names, next to simplification and consolidation, and it does not say AI does the work of the roles being cut, so this is not in our AI layoffs tracker.