Thursday, 27 January 2022

Telefonica presses on with staff cuts

by Harry Baldock, Total Telecom
Wednesday 01 December 21

According to unions, Telefonica is set to offer over 3,000 employees in Spain voluntary redundancy

Last month, Telefonica announced that it was aiming to cut between 2,000 and 4,000 jobs in the first half of 2022. Now, representatives from the Unión General de Trabajadores (UGT, the General Union of Workers) has confirmed that voluntary redundancy is set to be offered to any staff member born in or before 1967 and with at least 15 years of employment by the company…

Last month, Telefonica announced that it was aiming to cut between 2,000 and 4,000 jobs in the first half of 2022. Now, representatives from the Unión General de Trabajadores (UGT, the General Union of Workers) has confirmed that voluntary redundancy is set to be offered to any staff member born in or before 1967 and with at least 15 years of employment by the company. 
 
According to the UTG, this will equate to 3,261 of Telefonica’s roughly 16,000 Spanish employees. 
 
Telefonica is expected to restrict uptake of voluntary redundancy to 60%, meaning just under 2,000 staff could ultimately leave the company.
 
Perhaps unsurprisingly, this redundancy offer will not be extended to all departments equally, with those focussed on cybersecurity, marketing, and artificial intelligence notably excluded. Instead, the majority of the staff to receive the offer are expected to come from the network deployment, maintenance, and customer service departments.
 
While Telefonica’s group results have been largely improving over the last year, their home market of Spain has become something of a sore spot, with core profit slipping 8.9% last quarter compared to the previous year. 
 
This drop can be explained, at least in part, due to a hike in energy costs in Spain in recent months, a situation which is not likely to subside for many months more. However, Telefonica also noted the highly competitive and congested nature of the Spanish telecoms market, where five major operators do battle over slim profit margins.
 
Both Orange Spain and Vodafone Spain, have notably also announced plans to reduce their total number of employees, though on a smaller scale. 
 
 
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