Virgin Media O2 is weighing options to cut its £22 billion (€25.6bn) debt as investor nerves have seen a spike sell-off in its bonds. Options for owners Telefónica and Liberty Global include cutting VMO2’s expected £200 million dividend this year, shedding jobs and reducing capital expenditure, according to FT reporting. The company has become a focal point for investors in Europe’s junk debt market, with one distressed credit investor describing VMO2 as “the talk of the town right now”. Virgin shed 33,500 broadband customers in the first half of 2026, on top of the 138,400 it lost last year. It had a customer base of 5.42 million at the end of June.