Telefonica Spain looking to cut 5,000 jobs through voluntary retirement - report

Wednesday 11 September 2019 | 08:45 CET | News

Telefonica is looking to reduce its Spanish workforce by around 5,000 jobs through a new voluntary retirement plan, according to unnamed sources cited by Bloomberg. Initial talks have already been held with unions on an incentivised retirement plan for workers over 53 years of age, with one source indicating that a formal proposal will shortly be submitted to unions. The company brought forward a board meeting by more than 2 weeks to 10 September to discuss plans to reduce its debt pile and boost its share price, said the report.

Telefonica’s previous early retirement plan to cut the size of its staff was offered in 2016, when it took an upfront charge of EUR 2.9 billion to give workers the opportunity to take up voluntary redundancy from the age of 53.

Telefonica subsequently confirmed in a statement that its board analysed "an ambitious plan to improve the workforce and adapt it to the challenges of the coming years." It said the new proposal to be submitted to unions will include programmes designed to reskill the company’s remaining employees in new technologies such as the internet of things and big data.

The aim is to "simplify the current working framework, implement an extensive reskilling and upskilling programme to equip employees with new skills and to continue advancing in the digitalisation and robotisation of processes," it announced, adding that the cost of the plan is estimated at around EUR 1.6 billion before taxes, with the run rate of savings in direct expenses estimated at around EUR 220 million from 2021.       


Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Categories: General
Companies: Telefonica
Countries: Spain
::: add a comment
This article is part of dossier


Add comment

We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the Telecompaper website, they in no way represent the opinion of Telecompaper.


Telefonica to monetise mobile towers portfolio 'within a year'

Published 11 Sep 2019 09:30 CET | Spain
Telefonica has announced that it intends to accelerate a plan to monetise its extensive tower portfolio as part of a strategy ...

Telefonica mulling sale of Ecuador unit for up to EUR 800 mln - report

Published 06 Sep 2019 11:39 CET | Ecuador
Telefonica has begun exploring the sale of its Ecuador unit as part of an ongoing process to reduce its debt pile and boost its ...

Telefonica CEO acquires 100,000 company shares

Published 23 Aug 2019 14:39 CET | Spain
Telefonica's chairman and chief executive officer Jose Maria Alvarez-Pallete has acquired a total of 100,000 of the company's ...

Telefonica Spain revenues up another 0.3% in Q2 on improved churn

Published 25 Jul 2019 08:55 CET | Spain
Telefonica's Spanish unit (Telefonica Espana) continued its steady growth in the second quarter of 2019, with revenues up 0.3 ...

Telefonica maintains underlying growth in Q2, in line with outlook

Published 25 Jul 2019 08:40 CET | Latin America
Telefonica maintained underlying growth in its results in the second quarter and reiterated its outlook for a modest increase in ...

Telefonica takes EUR 3 bln charge for early retirement plan

Published 29 Jan 2016 15:03 CET | Spain
Telefonica has taken an upfront charge of EUR 2.9 billion to offer its workers an early retirement plan, according to a filing ...