United Internet is cutting 800 jobs at 1&1 and Ionos to reduce costs

Numerous employees at 1&1 and Ionos are losing their jobs as a result of the restructuring. This is expected to save 55 million euros annually.

United Internet's headquarters in Montabaur: The job cuts should be carried out in a socially responsible manner, including through partial retirement and volunteer programs. Photo: dpa

Berlin. The internet company United Internet is cutting around 800 jobs at its subsidiaries 1&1 and Ionos. With the restructuring programs, the group wants to strengthen its competitiveness and future viability, as the company announced on Thursday.

The measures will result in a one-off impact on earnings of around 95 million euros this year. After implementing the programs, United Internet expects annual savings of around 55 million euros, which will flow into further corporate development. The forecast for the operating result (Ebitda) in 2026 of 1.45 billion euros and consolidated sales remain unaffected by the special costs.

At the telecommunications subsidiary 1&1, the business customer division 1&1 Versatel is affected. The number of full-time employees there will be reduced from currently around 1,350 to around 1,000. The company wants to simplify management structures and reduce hierarchy levels. For this program, 1&1 will book one-time expenses of approximately 60 million euros in 2026.

After full implementation, 1&1 expects an annual earnings contribution of around 25 million euros from the 2028 financial year. The job cuts should be carried out in a socially responsible manner, including through partial retirement and volunteer programs.

The subsidiary Ionos plans to cut around 450 of its 3,800 full-time positions. Half of the cuts will apply at home and half abroad. Ionos justified the step with a focus on new market opportunities, the consolidation of technical platforms and the consistent use of artificial intelligence (AI). The company estimated the one-off restructuring costs at around 35 million euros.

From 2027, Ionos expects annual cost reductions of up to 30 million euros, which will be specifically reinvested in AI product development and the expansion of the cloud business. Here too, the management relies on volunteer programs in dialogue with employee representatives.

More: United Internet and 1&1 miss profit targets

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