Virgin Media O2’s shareholders, Liberty Global and Telefónica, are targeting about £600mn in cost reductions to ease investor worries over the group’s £22bn debt pile. The plan would combine job cuts with lower operating and capital expenditure, according to two people familiar with the matter. The push follows a summer sell‑off in VMO2 bonds that drove a $925mn senior unsecured bond down to 61 cents on the dollar, from 78 cents in early July, and pushed some senior secured bonds below 80 cents.

The bond rout made VMO2 a focal point in Europe’s junk‑debt market. In July the FT reported the owners were also considering a cut to the £200mn dividend, though no formal proposal has yet been put to the company. VMO2, which serves millions of UK broadband and mobile customers, lost 33,500 broadband users in the first half of 2026 after shedding 138,400 last year, leaving a base of 5.42mn at end‑June.

Competition from dozens of “altnet” fibre operators that have raised £31bn is eroding VMO2’s market share. Telefónica and VMO2 declined to comment; Liberty Global did not respond.