Job reductions at Plusnet due to sales and profit decreases
In the UK, telecommunications giants TalkTalk and Plusnet are facing significant challenges in 2025, as both companies have announced job cuts and financial losses.
TalkTalk, one of the UK's largest broadband providers, reported a steep increase in pre-tax losses from £153 million to £465 million in the year ending February 2025. This financial downturn was accompanied by a loss of approximately 420,000 broadband customers, with the majority of the decline coming from TalkTalk itself. The company's revenue also took a hit, dropping from £1.51 billion to £1.41 billion, and the workforce was reduced from 2,065 to 1,570 employees.
In a bid to stabilize its financial position, TalkTalk is refocusing its strategy and streamlining operations. This has resulted in job losses and a retreat from unprofitable segments.
Meanwhile, Plusnet, another company within the same group, has also been impacted by the market conditions. The company's turnover for the year 2024-2025 decreased from £401.8 million to £342.4 million, mainly due to the closure of its mobile division and lower equipment sales. Pre-tax profit for the same period reduced from £82.2 million to £70.9 million. Despite the financial challenges, Plusnet maintained its dividend payment to its parent company at £80 million for the year 2024-2025, the same total as the previous year.
Like TalkTalk, Plusnet is also undergoing changes to its operations, with a decrease in headcount from 1,077 to 944 employees. However, Plusnet has managed to maintain a better customer satisfaction record compared to TalkTalk, which ranks as one of the UK’s worst broadband providers in terms of complaints related to faults, complaint handling, and billing issues.
The restructuring efforts for both companies include ongoing attempts to migrate customers to other providers, financial restructuring efforts such as funding deals and seeking buyers for parts of the business, and a refocus on profitability amid a stagnating UK broadband market and accelerating shift to full fibre technology.
[1] Telecoms.com, "TalkTalk suffers 420,000 broadband customer losses as it reports £465m pre-tax loss", 13 May 2025. [Accessed 15 May 2025]. Available from: https://www.telecoms.com/571363/talktalk-suffers-420000-broadband-customer-losses-as-it-reports-465m-pretax-loss/
[2] ISPreview, "TalkTalk reports £465m pre-tax loss and 420,000 broadband customer losses", 13 May 2025. [Accessed 15 May 2025]. Available from: https://www.ispreview.co.uk/index.php/2025/05/13/talktalk-reports-465m-pretax-loss-and-420000-broadband-customer-losses/
[3] Ofcom, "Complaints data: broadband and pay-TV", 2025. [Accessed 15 May 2025]. Available from: https://www.ofcom.org.uk/research-and-data/tv-radio-and-on-demand/tv-radio-viewing-and-listening-data/broadband-and-pay-tv-complaints-data
[4] FT.com, "BT and TalkTalk face challenges in UK broadband market", 14 May 2025. [Accessed 15 May 2025]. Available from: https://www.ft.com/content/062f97a8-173d-4cb2-a4d9-3341847a24d3
[1] Amidst the financial struggles in the UK's broadband industry, both TalkTalk and Plusnet, two significant players, are grappling with pre-tax losses in their respective businesses.
[2] In a stark contrast to Plusnet's financial restructuring efforts that maintained the same dividend payment, TalkTalk, under pressure from increasing financial losses, has resorted to job cuts and a retreat from unprofitable segments to refocus its strategy.
