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United Internet outlines plans to cut hundreds of jobs across 1&1, Ionos subsidiaries

United Internet has outlined plans to cut around 800 jobs across two of its subsidiaries.. The German telecoms company confirmed that it will reduce its workforce at both its 1&1 AG and Ionos Group subsidiaries as part of a transformation that it said will “strengthen their competitiveness and future readiness.”.

As part of these plans, United Internet said its 1&1 AG unit, a telecoms provider in Germany, will reduce its overall headcount from around 1,350 to approximately 1,000 full-time employees at its business customer subsidiary 1&1 Versatel.. According to United Internet, these cuts will include the simplification of management structures and the reduction of hierarchical levels..

As part of the redundancies, 1&1 will incur one-off expenses of around €60 million ($69m) in 2026.. “Following the full implementation of the program, 1&1 expects an annual earnings contribution of around €25 million as of fiscal year 2028, aiming to strengthen the financial basis for investments in the company’s further development,” said United Internet.. Additional cuts will be made at Ionos, with the total headcount set to drop to around 3,350 full-time employees from the current 3,800.

United stated that the implementation of AI within its processes is a factor for these cuts.. The job cuts will impact both domestic and international operations, while it will be carried out primarily through voluntary redundancy programs, taking into account the specific requirements of the respective countries.

Ionos will take a one off hit of €35m ($40.5m) to carry out the cuts.. Funds from the cost savings will be reinvested in a “targeted manner” noted United Internet, which highlighted AI product development and the further expansion of the cloud business as opportunities..

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