United Internet restructures: around 800 full-time jobs to go at 1&1 and Ionos
The internet group is cutting about 350 jobs at 1&1 Versatel and 450 at Ionos. The restructuring costs around 95 million euros and is expected to save 55 million a year once complete.
Graphic: TERRA WORLD NEWS (own graphic based on the sources listed)
German internet group United Internet plans to cut around 800 full-time positions at its subsidiaries 1&1 and Ionos. At 1&1 Versatel, the workforce is to shrink from about 1,350 to around 1,000 full-time staff, with management layers also reduced. At web hosting company Ionos, around 450 of roughly 3,800 full-time jobs are to go, about half in Germany and half abroad. The measures are to be as socially responsible as possible: 1&1 Versatel already has partial retirement agreements and plans talks on a voluntary programme, while the cuts at Ionos are mostly voluntary.
Ionos also plans to consolidate technical platforms and make greater use of artificial intelligence. The group puts restructuring costs for 2026 at around 95 million euros, about 60 million at 1&1 and 35 million at Ionos. As a result, 1&1 cut its forecast for operating profit (EBITDA) to around 740 million euros, or about 800 million excluding the one-off costs. Once implemented, United Internet expects annual savings of around 55 million euros: Ionos expects up to 30 million a year from 2027, and 1&1 about 25 million a year from 2028.
At the same time, United Internet is strengthening 1&1's capital base: the group is contributing a loan claim of around 850 million euros in exchange for new shares, with no fresh cash involved. This raises its stake in 1&1 to around 89 percent. In Spain, employee representatives at the Ionos subsidiary Arsys in Logroño had announced a protest against the cuts for 7 October. For the group as a whole, United Internet is sticking to its forecast of around 6.25 billion euros in revenue for 2026.