Telefonica has told unions on Monday (December 25) that it plans to slash 5,100 jobs in Spain by 2026. The decision comes in part to reduce expenditures and adjust the company’s size to the current market conditions.
Telefonica is Spain’s leading multinational telecom operator and has 21,000 employees in its home country. The company employs over 100,000 people in its global market.
The operator and the unions have entered negotiations regarding the layoff. The company maintained that the decision to reduce the workforce at home was based on productivity, organization, and technical reasons.
Telefonica confirmed to APF about labor “adjustment”, but refrained from specifying the exact number of jobs it will cut.
The next meeting between unions and the company to negotiate conditions for the layoffs will take place next week.
Also read: Spanish Government to Buy 10% equity in Telefonica to counterbalance Saudi investment
Telefonica, BT, and Vodafone axing jobs
In addition to Telefonica, other European companies have also announced job cuts. BT and Vodafone said that they would axe jobs this year due to the intense competition and low-cost market. Likewise, the Spanish peer is also facing heavy debt issues increasing concerns among investors over its solvency.
The concerns have also lost the company its share price from 23 Euros in 2007 to just 4 Euros in 2023. Telefonica posted a profit of 2 billion Euros in 2022.