United Internet plans to cut around 800 jobs at 1&1 and Ionos

United Internet plans to reduce its workforce by around 800 positions across its 1&1 AG and Ionos Group subsidiaries.

The German telecommunications company said the reductions are part of a transformation program intended to simplify operations and strengthen the subsidiaries' competitiveness and future readiness.

Cuts at 1&1 Versatel

At 1&1 AG, the business customer subsidiary 1&1 Versatel is expected to reduce its workforce from approximately 1,350 to about 1,000 full-time employees.

The changes will include simplifying management structures and reducing the number of hierarchical levels. United Internet said 1&1 will incur one-off costs of approximately €60 million ($69 million) in 2026.

After the program is fully implemented, 1&1 expects the measures to contribute around €25 million in annual earnings from fiscal year 2028. The company said the savings will support investment in its further development.

Reductions at Ionos

Ionos is also expected to reduce its headcount, from approximately 3,800 to about 3,350 full-time employees. United Internet identified the implementation of artificial intelligence in Ionos' processes as one factor contributing to the planned reductions.

The cuts will affect both domestic and international operations. They will be implemented primarily through voluntary redundancy programs, with the approach adapted to the requirements of each country. Ionos is expected to incur a one-off cost of €35 million ($40.5 million) to carry out the reductions.

United Internet said the resulting savings will be reinvested in selected areas, including AI product development and further expansion of the cloud business.