Telefónica Plans Major restructuring, Potentially impacting 5,000 Jobs in Spain
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Telefónica is initiating a meaningful restructuring effort in Spain that could result in the elimination of up to 5,000 positions across its various divisions, as the company seeks to streamline operations and achieve considerable cost savings. Unions were presented with a dossier outlining at least 5,040 surplus roles within Telefónica España, Telefónica Móviles, and Telefónica Soluciones on Monday, sparking immediate negotiations over the terms of a potential Employment Regulation File (ERE).
initial Impact and Union Response
The proposed cuts represent a substantial shift for the telecommunications giant. Specifically, the impact on Telefónica de España is projected to reach 3,649 positions – equivalent to 41% of its 8,892-person workforce. Telefónica Móviles could see 1,134 jobs eliminated, representing 31.3% of its 3,587 employees, while Telefónica Soluciones faces a potential reduction of 267 positions, or 23.9% of its 1,118-person staff.
Beyond these initial figures, the company has also identified areas not considered surplus, tho the employment impact within those divisions remains unknown. The unions, including CC.OO.and UGT, are pushing for a voluntary process, prioritizing early retirement options for employees over 55 and favorable economic and social conditions. CC.OO. has indicated it will formally respond to the proposal on Wednesday, November 26.
Focus on Voluntary Departures and CEV Extension
A key demand from UGT is that any workforce reduction be structured as a strictly voluntary process, aligning with agreements reached during the 2024 ERE. According to a statement released by the union, extending the current Convenio Especial de Voluntariedad (CEV) untill 2030 is crucial.”It will be unachievable to reach a global agreement if the negotiations to extend the current CEV until 2030 do not progress satisfactorily,” the statement read. This extension, the union argues, would safeguard guarantees and improve socio-labor conditions for employees navigating the challenges presented by the company’s strategic plan unveiled on November 4.
broader Restructuring and Cost Savings Goals
The restructuring extends beyond the three core divisions initially detailed. telefónica SA, Movistar+, Telefónica Innovación Digital, and Telefónica Global Solutions are also affected, with initial contact between the company and union representatives from these entities planned for Tuesday. Sector sources estimate the total impact across all seven companies could range from 6,000 to 7,000 professionals, though negotiations aim to reduce this figure to around 5,000 dismissals.
This restructuring is intrinsically linked to Telefónica’s broader financial objectives.The company’s strategic plan, presented earlier this month, targets cost savings of approximately €2.3 billion by 2028 and €3 billion by 2030, with personnel expenses representing a significant portion of these savings.
Recent Precedent and Government oversight
Telefónica’s previous ERE, finalized in January 2024, resulted in the departure of nearly 3,400 workers – a 33% reduction from the initially proposed 5,124.That process carried a cost of roughly €1.3 billion (before taxes), averaging approximately €380,000 per departing employee. While this figure is lower than previous exit plans, the ERE generated annual savings of around €285 million for the company.
The Spanish government, which holds a 10% stake in Telefónica through the State Society of Industrial Participations (SEPI), is closely monitoring the situation. Minister for Digital Transformation and Public Service,Óscar López,emphasized last week that any ERE must be developed in agreement with worker representatives. “What happens must always be with the agreement of the unions,” López stated, underscoring the government’s commitment to protecting employee interests.
the coming weeks will be critical as Telefónica and the unions navigate these complex negotiations, shaping the future of the company’s workforce and its position within the evolving Spanish telecommunications landscape.
