A report published September 28 put the number of operational AI applications across Telefónica Deutschland above 150. Separately, reports say the German business plans to reduce up to 1,100 full-time positions by the end of 2026, as part of a restructuring that also includes store closures and process changes.
Telefónica Deutschland combines AI deployment with restructuring
The reported AI applications span areas including network operations, customer service, personalization and internal processes. Telefónica Deutschland has described wider AI use as part of efforts to simplify operations and consolidate activities. The commercial context also includes the loss of wholesale business associated with 1&1 and the digitization of sales.
Reports also say about 60 O2 shops are slated to close from a network of around 800. Franchise-operated locations are unaffected.
Where AI fits into network operations
On March 19, 2026, Telefónica Germany described Network Operations Agent (NOA) as an AI assistant that provides network analysis and troubleshooting recommendations for engineers and service managers.
Separate AI energy features adjust antenna-network frequency bands and capacity in response to demand. Telefónica Germany says these features can reduce electricity costs in the antenna network by around 10%.
The workforce figures cover different horizons
The reported plan calls for reducing up to 1,100 full-time positions by the end of 2026. A separate report published August 14 described an internal-document projection of about 1,650 fewer positions by 2028. That projection included a further 550 positions for 2027–2028, a phase marked preliminary.
Germany’s savings target and Telefónica’s group goals
The German restructuring has a reported target of about €185 million in annual savings from 2028. Telefónica S.A.’s group-wide Transform & Grow strategy sets separate gross-efficiency targets: up to €2.3 billion in 2028 and up to €3 billion in 2030.
What Telefónica’s strategy says about Spain
Telefónica S.A. presented its Transform & Grow strategy on November 4, 2025, naming Spain, Germany, the United Kingdom and Brazil as its four focus markets. The strategy does not announce Spanish job cuts or shop closures matching the German measures.
