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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.       


 



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Categories: General
Companies: Telefonica
Countries: Spain
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