Swiss telecom operator Sunrise Communications has announced 358 job cuts as part of a multi-year restructuring programme aimed at reducing operating costs, improving efficiency and strengthening its position in Switzerland’s competitive mobile and broadband markets.
The workforce reduction comes as Sunrise faces pressure on revenue and profitability despite improvements in mobile subscriber additions, broadband customer acquisition and free cash flow.
Sunrise initially proposed eliminating 450 positions. Following consultations with the Employees’ Representation Committee and syndicom trade union, the company reduced the number of compulsory redundancies to 358, avoiding 92 of the originally proposed job losses.
The restructuring will also involve a comprehensive review of supplier contracts, external expenses, organisational structures and operational processes.
Sunrise Financial Performance: Revenue Drops to CHF 712.9 Million
Sunrise reported second-quarter 2026 revenue of CHF 712.9 million, down 2.6 percent from CHF 731.6 million a year earlier.
Adjusted EBITDA after leases (EBITDAaL) declined 3.8 percent to CHF 244.4 million from CHF 254.1 million.
However, the company’s quarterly net loss narrowed significantly to CHF 22.4 million from CHF 53.6 million, representing an improvement of 58.2 percent.
For the first six months of 2026, Sunrise generated revenue of CHF 1.436 billion, down 1.2 percent year on year. Adjusted EBITDAaL reached CHF 490.3 million, declining 0.8 percent.
The company’s first-half net loss widened to CHF 61.8 million from CHF 54.9 million.
| Financial indicator | Q2 2026 | YoY change |
| Revenue | CHF 712.9 million | −2.6% |
| Adjusted EBITDAaL | CHF 244.4 million | −3.8% |
| Net loss | CHF 22.4 million | 58.2% narrower |
| Residential revenue | CHF 499.5 million | −4.2% |
| Business and wholesale revenue | CHF 209 million | +0.5% |
| CAPEX (P&E additions) | CHF 101.6 million | −12.7% |
| Adjusted free cash flow | CHF 204.4 million | +33.3% |
The decline in residential revenue indicates continued pressure on Sunrise’s consumer telecommunications business, while enterprise and wholesale operations have demonstrated greater resilience.
Sunrise Subscriber Base: 3.18 Million Mobile and 1.29 Million Broadband Customers
According to the company’s investor relations disclosures, Sunrise served approximately 3.18 million mobile subscribers, 1.29 million broadband subscribers and 960,000 television subscriptions at the end of June 2026.
Sunrise recorded 21,000 net additions in mobile postpaid subscriptions during the second quarter, while internet subscriptions increased by 3,000, representing its strongest quarterly internet net additions in five quarters.
The company’s commercial strategy increasingly focuses on retaining existing customers, reducing churn and improving customer lifetime value.
Its Sunrise Rewards loyalty programme is one of the initiatives designed to strengthen customer engagement and reduce subscriber losses.
Revenue pressure remains evident in average revenue per user (ARPU). Mobile ARPU declined from CHF 29.3 to CHF 28.9 in the second quarter, while fixed customer relationship ARPU fell from CHF 57.9 to CHF 54.5.
Sunrise Employee Base: 358 Job Cuts Represent Around 12% of Workforce
Sunrise had approximately 2,900 full-time-equivalent positions when the restructuring proposal was announced in September 2026.
The confirmed elimination of 358 positions represents approximately 12.3 percent of that workforce baseline.
Earlier in 2026, Sunrise implemented another restructuring that resulted in 147 job cuts. Together, the two announced reductions amount to 505 positions, although this should not be interpreted as the net decline in headcount because hiring and other workforce changes may have occurred.
The company has also introduced a voluntary leaver programme in selected departments. Affected employees will receive support under an expanded social plan, including additional benefits for older workers.
The restructuring is expected to simplify internal operations and management structures while maintaining the quality of network services and customer support.
Sunrise has not disclosed a revised employee headcount following the latest redundancies.
Sunrise CAPEX Falls 12.7% as Network Investment Becomes More Selective
Sunrise reduced its second-quarter capital expenditure, measured through property and equipment additions, by 12.7 percent to CHF 101.6 million from CHF 116.4 million.
For the first half of 2026, CAPEX declined 9.4 percent to CHF 235.2 million.
The company’s second-quarter CAPEX-to-revenue ratio was approximately 14.3 percent, consistent with its full-year objective of keeping capital investment below 15 percent of revenue.
Sunrise is seeking to balance network investment with cash-flow improvement and operating-cost reductions.
The company is also exploring infrastructure-sharing opportunities, including cooperation with rival Salt on mobile network deployment in rural Switzerland, to improve capital efficiency.
Sunrise Targets CHF 1 Billion EBITDAaL in 2026
Despite the decline in revenue and adjusted EBITDAaL during the first half, Sunrise has maintained its financial guidance for 2026.
The company expects:
Broadly stable annual revenue.
Adjusted EBITDAaL of approximately CHF 1 billion.
CAPEX below 15 percent of revenue.
Adjusted free cash flow of CHF 380 million to CHF 400 million.
Sunrise’s cost-reduction strategy includes supplier contract renegotiations, organisational simplification, greater automation and improved operational execution.
The transformation will prioritise network performance, customer experience, customer loyalty and service reliability.
The company has not disclosed the annual savings expected specifically from the 358 redundancies or the total restructuring expenditure.
The financial impact of the workforce reduction will therefore depend on severance expenses, implementation costs, recurring salary savings and the company’s ability to maintain service quality with a smaller workforce.
BABURAJAN KIZHAKEDATH
