Germany’s United Internet AG (UTDI.DE) has confirmed its fiscal year 2026 outlook even as two of its key subsidiaries announced sweeping restructuring programs affecting hundreds of workers.
The group’s subsidiaries, 1&1 AG (1U1.DE) and IONOS Group SE (IOS.DE), have launched transformation programs that will result in a combined reduction of around 800 full-time positions across their operations.
United Internet stated that one-off restructuring expenses at the group level would total 95 million euros, creating a negative earnings impact during fiscal year 2026.
Despite the charges, the company confirmed that its operating EBITDA guidance of around 1.45 billion euros for fiscal year 2026 remains unaffected by the one-off special item.
United Internet continues to expect group sales of around 6.45 billion euros and cash capital expenditure of between 600 million euros and 650 million euros for the full year.
Following completion of the transformation programs, the companies expect annual cost savings of around 55 million euros, which will be reinvested into further business development.
The restructuring at 1&1 AG (1U1.DE) targets its business customer subsidiary 1&1 Versatel, where management structures will be simplified and hierarchical levels reduced significantly.
1&1 Versatel plans to reduce its headcount from approximately 1,350 employees to around 1,000 full-time employees, and will initiate discussions on a voluntary redundancy program alongside existing partial retirement agreements.
As a result of the one-off restructuring expenses of around 60 million euros, 1&1 now expects EBITDA of approximately 740 million euros, while adjusted EBITDA is still forecast at around 800 million euros.
The restructuring program at 1&1 Versatel is expected to generate an annual earnings contribution of around 25 million euros starting in fiscal year 2028.
IONOS Group SE (IOS.DE) will reduce its global workforce from approximately 3,800 to around 3,350 full-time employees, with the cuts split roughly equally between domestic and international operations.
The workforce reduction at IONOS will be carried out primarily through voluntary redundancy programs, taking into account the specific legal and regulatory requirements of each country involved.
IONOS anticipates one-off restructuring expenses of around 35 million euros, with the majority of those costs expected to land in the fourth quarter of 2026.
Starting in 2027, IONOS expects the program to deliver annual cost savings of up to 30 million euros, strengthening the company’s long-term earnings profile.
IONOS confirmed its outlook for adjusted EBITDA in the current fiscal year remains at 530 million euros, signalling confidence in its underlying operational performance despite the near-term restructuring burden.
