United Internet Subsidiaries Initiate Transformative Measures

United Internet AG has announced strategic transformation programs for its subsidiaries, 1&1 AG and IONOS Group SE, aiming to enhance competitiveness and future preparedness. These initiatives involve significant workforce restructuring and investment adjustments.

1&1 AG will restructure its business customer unit, 1&1 Versatel, reducing its workforce from 1,350 to approximately 1,000 employees. This is projected to entail one-off expenses of EUR 60 million in 2026 but aims for an annual earnings contribution of EUR 25 million by 2028.

IONOS Group SE's transformation is focused on aligning with market opportunities, reducing staff from 3,800 to 3,350 employees, and using technologies like AI. Restructuring will cost EUR 35 million in 2026, with potential annual savings of EUR 30 million starting in 2027.

These programs are expected to result in a one-time restructuring cost of EUR 95 million but are projected to facilitate annual cost savings of EUR 55 million, subsequently reinvested for growth.