Orange Spain has informed unions that it plans to lay off a total of 485 workers throughout the country, equivalent to around 15 percent of its total workforce of around 3,000, reports Europa Press, citing labour representatives. The company reportedly described the collective dismissal (ERE) as “essential” to guarantee its competitiveness in a market that has seen a shift towards lower-cost providers in recent years.
The dismissals are set to take place in May and June, with trade union CCOO indicating that they will affect not only the group’s main company, but also Orange’s foundation, stores and call centres. Orange recently reported revenues down 7.4 percent year on year in the first three months of 2021 following falls of 5.6 percent and 5.9 percent in the previous two quarters.
Orange Spain’s CEO Jean-Francois Fallacher announced the company’s intention to implement a cost restructuring plan during the presentation of the company's first-quarter results, having previously complained of high tax burdens that could affect the investments necessary for the deployment of 5G in the country.
The operator has also begun merging its Republica Movil brand into its Simyo brand as part of a simplification process to reduce costs.
