Virgin Media O2 have confirmed a staggering cut of 2,000 UK jobs in their Q2 2023 results, which revealed a decline in the number of broadband customers amid the cost-of-living crisis and rising broadband prices.

Their fixed customer base fell by 24,700 in Q2, and their contract mobile base saw a net reduction of 1,500.

The two companies, which merged in the UK in 2021, said the decrease in customers was likely due to price rises in April and May. According to the results, broadband on its own was more resilient than other services, with a net reduction of 15,300 in Q2, which the company credited to their 34% year-on-year increase of broadband speed.

Despite a net reduction in its customer base, Virgin Media O2 saw a 6.2% year-on-year increase in revenue, amassing to £2,713.1 million. This increase was largely due to a rise in mobile revenue driven by consumer price rises.

However, consumer fixed revenue and B2B fixed revenue decreased in Q2.

Further, the company saw an adjusted free cash flow on £460.5m in Q2, down from £751.6 million in the first quarter.

The job cuts are set to affect 2,000 UK workers, or about 12% of its total workforce, by the end of 2023, including 800 reductions that had already been announced.

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A spokesperson for Virgin Media O2 said the move was in an effort to “simplify our operating model” and said the company was planning on working with both the CWU and Prospect unions as well as employee representatives to discuss the future of their employment and the business.

It appears the broadband company is following in the footsteps of its major rivals, as BT announced a cut of 55,000 jobs earlier this year, and Vodafone announcing plants to cut 11,000 jobs globally within the next three years.

Virgin Media O2 have yet to confirm which departments will be most affected by the job cuts, or if these jobs would be replaced by automation or AI.

Amid the cost-of-living crisis, UK consumers have continued to feel squeezed by their broadband providers – a recent report found that the UK ranked 73rd globally in broadband costs, with their European counterparts securing faster, cheaper, and more affordable broadband.

Further, it was estimated that about one million Britons were forced to disconnect their broadband amid rising energy bills during January and February of 2023, falling under Q1 of 2023.