Telefonica has signed a new restructuring plan with unions in Spain, after members of the two main unions, CCOO and UGT, approved the deal. As a result, an estimated 2,700 employees are expected to take voluntary redundancy, resulting in a one-time charge of EUR 1.5 billion in the fourth quarter of 2021. Telefonica estimates the annual cost savings from the programme at EUR 230 million from 2023, with a positive effect on cash flow already from next year.
The collective agreement, valid until the end of 2023, also provides a general salary increase of 1.5 percent, along with other improvements to mobility, training and recruitment policies, the unions told Europa Press. In total, up to 2,982 employees can participate, out of a total 4,532 eligible for the programme based on age and seniority, they said.
According to Telefonica, employees aged 55 or older and with at least 15 years of service at the company will be eligible for the early departure programme, with approval dependent also on their function and area of employment. Telefonica conducted a similar voluntary redundancy programme in 2019, which resulted in the departure of 2,632 employees. The new programme will start from February.
