1&1 to cut 350 Versatel jobs, saving €60 m and boosting 2028 profit by €25 m
On 13 September 2026 1&1 AG announced a voluntary restructuring at its business‑customer arm Versatel that will eliminate 350 positions – roughly a quarter of the subsidiary’s staff – and generate €60 million of one‑off costs, with the aim of lifting profit by €25 million from 2028.
On 13 September 2026 the internet group 1&1 AG confirmed that its business‑customer subsidiary Versatel will eliminate 350 positions, equivalent to 26 % of the subsidiary’s current staff of 1,350 employees. The cuts will be carried out through a voluntary programme and are scheduled for implementation during 2027.
Restructuring details
The Heise Online report states that the job reductions will be "sozialverträglich über ein Freiwilligenprogramm" – a socially responsible voluntary programme. The aim, according to the parent company in Montabaur, is to simplify hierarchy levels and streamline management structures within Versatel. Versatel operates a fibre‑optic network in around 350 German cities and supplies back‑haul services to 1&1’s mobile‑network division.
Financial impact
1&1 expects the restructuring programme to generate one‑off costs of roughly €60 million in the current fiscal year. If the job cuts are fully implemented, the company projects that the annual result will be about €25 million higher from 2028 onward. Both figures are taken directly from the Heise Online article, which reproduces the statements made by the 1&1 parent.
| Metric | Value | Unit | Period / Base |
|---|---|---|---|
| Jobs to be cut | 350 | positions | Implementation in 2027 |
| Workforce share | 26 | % | Current workforce of 1,350 employees |
| One‑off restructuring cost | 60 | million EUR | Current fiscal year |
| Additional profit from 2028 | 25 | million EUR | From 2028 onward |
Implementation timetable
The restructuring programme was announced on 13 September 2026. The voluntary job‑cut process is slated to begin and be completed within the calendar year 2027. The projected profit uplift is linked to the fiscal year starting in 2028, meaning the financial benefit will be reflected in the first full‑year results after the cuts are in place.
Company background
1&1 AG is headquartered in Maintal, Germany, and is part of the United Internet Group, whose headquarters are in Montabaur. Versatel, the subsidiary affected by the cuts, is a business‑customer arm that provides fibre‑optic infrastructure to corporate and public‑sector clients and also supports 1&1’s mobile‑network operations. While Wikidata supplies basic corporate data – such as the founding date of 1&1 (1 January 1997) and United Internet (1 January 2000) – the packet notes that headcount and executive details should be verified against the companies’ own filings before publication.
Who is affected and what changes to expect
The 350 positions slated for removal represent roughly one in four employees at Versatel. The voluntary nature of the programme suggests that affected staff will receive a severance package, although the exact terms are not disclosed in the source. Clients of Versatel – primarily corporate and governmental organisations that rely on its fibre network – are not expected to experience service interruptions, as the restructuring is described as a move to simplify management rather than to cut operational capacity.
Open questions
- The exact composition of the 350 roles (e.g., managerial vs. technical) has not been detailed.
- The identity of the chief executive(s) overseeing the restructuring remains unconfirmed in the packet.
- Potential downstream effects on United Internet’s broader financial outlook have not been quantified.
These points are noted as unknown because the Heise Online article does not provide further clarification.
Next steps
Stakeholders should monitor 1&1’s forthcoming financial statements for confirmation of the €60 million restructuring expense and the €25 million profit uplift forecast. The implementation of the voluntary job‑cut programme in 2027 will be the first concrete operational milestone, after which the company will assess whether the intended cost‑saving and profit‑boosting targets are on track.