Zegona, the new owner of Vodafone Spain, has informed the unions about a collective dismissal procedure (ERE) that will affect up to 1,198 employees, representing almost 40% of the current workforce of the company, which is composed of 3,268 workers. This reduction will decrease Vodafone Spain’s workforce to around 2,000 employees, a similar size to MásMóvil before its merger with Orange.
The company has justified this measure by citing “economic, productive, and organizational reasons” due to the “significant financial and commercial deterioration” that the teleco has experienced in recent years. According to data provided by the company, Vodafone Spain has seen a total revenue decrease of 8% and has lost approximately 400,000 contract customers in the last two years.
Impact and Process of the ERE
The collective dismissal process has been presented to the unions, and although a start date for negotiations has not been set yet, the company has emphasized its commitment to maintaining a dialoguing and responsible attitude throughout the procedure. “It is the only formula to guarantee the future viability and competitiveness of the company,” highlighted Vodafone Spain in a statement.
The unions, on the other hand, have strongly criticized Zegona’s decision. Beatriz Molino, general secretary of the FSC-CCOO union section in Vodafone, has described the ERE as a “barbarity” and has insisted that the exits should be voluntary. UGT has also criticized what they see as Zegona’s “voracity” and Vodafone Spain’s lack of strategic vision.
Historical Context and Comparison with Other EREs
This new ERE is the fifth that Vodafone Spain has carried out since 2013. In total, the previous collective dismissals have resulted in the departure of around 3,200 employees. This new adjustment adds to other recent ones in the telecommunications sector, such as Telefónica’s, which concluded with the voluntary departure of 3,420 workers, and Avatel Telecom’s, which affected 674 employees.
New Leadership in Vodafone Spain
The announcement of the ERE comes less than 15 days after José Miguel García took on the role of CEO of Vodafone Spain on June 1. García leads a renewed management team that has reduced its size from 11 to 7 members. Among the new executives are Ángel Álvarez as director of the Consumer unit and José Ortiz Martínez as head of the Legal, Regulation, and Corporate Security area.
Conclusion
The situation of Vodafone Spain reflects the economic and market challenges facing telecommunications companies in the current context. While Zegona justifies the dismissals as a necessary measure to ensure future viability, unions and workers criticize the lack of alternatives and the magnitude of the cutback. The development of negotiations in the coming weeks will be crucial to define the future job prospects of the affected employees and Vodafone’s operational strategy in Spain.