The Spanish operator Telefónica is considering a new wave of layoffs that could affect between 4,000 and 5,000 workers in Spain, according to this week’s report by El Confidencial. This potential restructuring is part of the company’s efforts to improve its operational efficiency in its home market.
Over the past decade, Telefónica has reduced its global workforce by around 20,000 employees, with most cuts occurring in Spain. The current CEO, Marc Murtra —who has been in charge for only a few months— seems willing to continue the cost-cutting strategy of his predecessor.
In January 2023, Telefónica already negotiated with unions to let go of 3,421 workers, which was expected to achieve an estimated annual saving of 285 million euros starting in 2025. That negotiation helped avoid a more severe adjustment, which initially foresaw the layoff of up to 5,100 people.
According to sources cited by El Confidencial, the new measure would be structured similarly, prioritizing voluntary exits for employees aged 55 or older with long tenures in the company, through incentivized severance packages.
Telefónica currently employs more than 100,000 people globally, with a strong presence in Spain, Brazil, Germany, and the United Kingdom.
Murtra is currently engaged in a strategic review focused on five pillars: adapting to changes in Europe, putting the customer at the center, leveraging technology, achieving operational excellence with disciplined industrial logic, and creating sustainable value for customers, employees, and shareholders.
This review process has already had consequences outside of Spain: Liberty Global has paused its search for investors for the fixed-line division of Virgin Media O2 in the UK, a company jointly owned by Telefónica and the result of the merger between Virgin Media and O2 in 2021.
Source: El Confidencial and DCD