---
title: "Telefónica is testing in Germany how lean a company can become by rolling out AI across the board. Spain is on the same playing field — Marsanne Studio AI watch"
description: "Telefónica is deploying 150 AI use cases at its German subsidiary O2 to save 185 million euros a year from 2028."
url: "https://marsanne.studio/en/ai-watch/telefonica-is-testing-in-germany-how-lean-a-company-can-become-by-792ed6/"
lang: "en"
---

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Analysis · 28 September 2026

# Telefónica is testing in Germany how lean a company can become by rolling out AI across the board. Spain is on the same playing field

Original title, in Spanish: “Telefónica prueba en Alemania cuánto puede adelgazar una empresa cuando mete IA en todas partes. España juega en el mismo tablero”

**Publication**

Xataka (Spain)

**Author**

[Javier Pastor](https://www.xataka.com/autor/javier-pastor)

**Published on**

28 September 2026 · read in the page structured data

## Summary

Telefónica is restructuring its German subsidiary O2 after the loss of a major customer, applying around 150 AI use cases in network management, customer service, personalisation and internal processes. According to the German CEO Santiago Argelich Hesse, AI functions that adjust network frequencies reduce the antennas' electricity consumption by around 10%. The subsidiary plans to cut up to 1,100 jobs at the end of 2026 (1,650 according to an internal document cited by Handelsblatt) and to close 60 stores, with a savings target of 185 million euros a year from 2028. The group's Transform & Grow 2026-2030 strategic plan targets 2.3 billion euros of efficiencies in 2028 and 3 billion in 2030, with Spain, Germany, the United Kingdom and Brazil as core markets, and AI automation as an explicit pillar.

Summary based on the full text of the article.

[Read the article on Xataka →](https://www.xataka.com/empresas-y-economia/telefonica-prueba-alemania-cuanto-puede-adelgazar-empresa-cuando-mete-ia-todas-partes-espana-juega-tablero)

## Figures cited

-   150 use cases
    
    Number of AI use cases applied at O2
    
    O2 Germany
    
    > « va a aplicar unos 150 casos de uso de IA mientras reduce su plantilla, cierra tiendas y simplifica procesos »
    
-   185 EUR million
    
    Annual savings targeted from 2028
    
    O2 Germany, from 2028
    
    > « tiene el objetivo de ahorrar 185 millones de euros al año desde 2028 »
    
-   10 %
    
    Reduction in the antenna network's electricity consumption thanks to AI
    
    O2 Germany antenna network
    
    > « sus funciones de IA para ajustar frecuencias y capacidad según la demanda reducen alrededor de un 10% el consumo eléctrico de la red de antenas »
    
-   1,100 jobs
    
    Jobs cut at the end of 2026
    
    O2 Germany, end of 2026
    
    > « Telefónica Deutschland ya ha pactado la eliminación de hasta 1.100 puestos de trabajo a finales de 2026 »
    
-   1,650 jobs
    
    Estimated job cuts through to 2028
    
    O2 Germany, through to 2028
    
    > « Un documento interno publicado por Handelsblatt elevaba la cifra a 1.650 puestos que podrían eliminarse hasta 2028 »
    
    Source: Handelsblatt
    
-   60 stores
    
    Stores closed
    
    O2 Germany
    
    > « el cierre de unas 60 tiendas »
    
-   2,300 EUR million
    
    Efficiencies expected from the group plan in 2028
    
    Telefónica group, 2028
    
    > « Telefónica prevé que esa simplificación genere hasta 2.300 millones de euros de "eficiencias" en 2028 y 3.000 millones en 2030 »
    
-   3,000 EUR million
    
    Efficiencies expected from the group plan in 2030
    
    Telefónica group, 2030
    
    > « 3.000 millones en 2030 »
    

## Classification

**Country**

Germany, Spain

**Company size**

Large companies

**Industries**

Software vendors, IT services companies, telecoms

**Companies**

1&1 (cited), Telefónica (deploys AI), O2 (Telefónica Deutschland) (deploys AI)

**Keywords**

restructuring, automation, telecommunications, job cuts, network management, operational efficiency

Entry written by Marsanne Studio from the cited article, with the help of an AI model (claude-sonnet-5). The rights to the article and its illustrations belong to Xataka and its author. Entry translated from French by Claude Sonnet 5.5.