Information
The transfer comes as a part of the corporate’s wider concentrate on effectivity beneath new CEO Marc Murtra
In accordance with nameless insiders chatting with the Monetary Instances, Telefonica is proposing to chop as much as 5,000 in its residence market, Spain.
Sources say that roughly 3,650 roles at Telefónica Spain may very well be lower, representing round 41% of the unit’s whole headcount. Round 1,100 jobs at Telefónica Cell an round 270 at Telefónica Options is also on the chopping block.
The sources pressured that no formal determination has been introduced and precise job cuts may very well be decrease.
The UGT (Unión Basic de Trabajadoras y Trabajadores) commerce union has confirmed these plans, having been advised by administration that the cuts are being made for “organizational, technical, and manufacturing causes”.
The UGT is demanding that every one job losses are carried out as a “purely voluntary course of based mostly on early retirement schemes”.
The announcement of those job cuts at Telefonica shouldn’t come as a shock, with downsizing having been underway throughout the Group for years. In January final yr, Telefonica reached an settlement with unions to lower round 3,400 jobs in Spain, describing the choice as ‘essential’ for the corporate’s long run development. By 2025, with new CEO Marc Murtra on the helm, Telefonica was trying to additional speed up its streamlining efforts, with Murtra pledging to additional scale back prices and concentrate on the corporate’s 4 key markets, Brazil, Germany, Spain, and the UK.
Rumours that these cost-cutting measures would lead to additional Spanish job cuts first started to flow into again in Could.
The announcement of the approaching job cuts comes shortly after Telefonica’s Capital Markets Day, through which Murtra pressured the necessity for additional cuts and pledged to make ‘powerful selections’ for the enterprise’s long-term welfare.
In the end, the corporate’s is searching for to avoid wasting €2.3 billion by 2028, and €3 billion by 2030
As a part of the announcement, Telefonica stated it could lower its dividend in half, transfer which noticed the corporate’s share value sink by over 10%.
In the meantime, Telefonica’s retreat from its abroad empire continues. The corporate has been divesting of its Latin American operations, notably pulling out of Argentina, Peru, Colombia, Ecuador and Uruguay earlier this yr.
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