United Internet Subsidiaries Announce Transformation Initiatives

United Internet AG's subsidiaries, 1&1 AG and IONOS Group SE, have unveiled their transformation programs aiming to boost competitiveness. 1&1 AG plans to streamline its business customer subsidiary's operations, reducing its workforce from 1,350 to around 1,000, incurring one-off expenses of approximately EUR 60 million in 2026. This is projected to yield an annual earnings contribution of EUR 25 million starting in 2028.

IONOS Group SE will similarly adjust its workforce, reducing it from about 3,800 to 3,350 employees worldwide. The shift incorporates voluntary redundancy programs and aims at annual cost savings of EUR 30 million from 2027. The restructuring will involve one-off expenses of around EUR 35 million in 2026.

Overall, United Internet expects these changes to result in a one-off impact of EUR 95 million in 2026, but foresees long-term cost savings of EUR 55 million annually, supporting further business development.