Spanish govt oks Telefonica's planned 6,500 job cuts

News Broadband Spain 15 JUL 2011
Spanish govt oks Telefonica's planned 6,500 job cuts
The Spanish Labour Ministry has approved the agreement between Telefonica and unions to cut up to 6,500 jobs through 2013 to reduce company costs. The current value of the cost of Telefonica's Redundancy Plan is estimated to reach EUR 2.7 billion before taxes (around 415,000 per employee), which will be booked as non-recurrent personnel expenses in the current fiscal year. The company expects the impact of these measures on its cash generation to be positive from year one and allow it to reiterate its shareholder remuneration commitments. The impact of the Redundancy Plan was not included in the guidance announced by Telefonica for 2011 and for the period 2011-2013, the company said.

Categories:

Fixed

Companies:

Telefonica- Movistar

Countries:

Spain

Tags:

Voice services, Staff, Internet Access, Wholesale, Government policy

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