United Internet to cut jobs across 2 businesses
Telecoms group United Internet outlined a cost-saving programme across subsidiaries 1&1 Versatel and technology unit Ionos which will result in 800 job cuts.
United Internet stated it would implement a transformation and restructuring programme at 1&1 impacting processes and IT structures to increase productivity, cutting staff from 1,350 to 1,000 employees. It also plans a drive to simplify management and reduce hierarchies.
It expects the programme to entail one-off expenses of around β¬60 million this year and, following full implementation, an annual earnings contribution of around β¬25 million as of 2028.
As for Ionos, United Internet stated it launched a strategic transformation programme to align βwith new market opportunities and future growthβ, which would result in an adjustment to its workforce.
It stated consolidation of technical platforms and consistent use of AI would result in a reduction from 3,800 employees to 3,350, with the cuts split between domestic and international operations.
Costs incurred are expected to amount to β¬35 million, though it anticipates annual cost savings of up to β¬30 million beginning in 2027.
βThe funds will be reinvested in a targeted manner including in AI product development and the further expansion of the cloud business,β it stated.
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