Published: January 4, 2024, 1:35 a.m. ET
Written by Andrea Figueras
Telefonica announced that it has reached a collective bargaining agreement with its trade unions to make up to 3,421 employees redundant in Spain, pursuant to the company’s restructuring plan.
The job cuts, which will cost around 1.3 billion euros ($1.42 billion) before tax, will run until December 31, 2026, with the possibility of one further extension.
Written by Andrea Figueras
Telefonica announced that it has reached a collective bargaining agreement with its trade unions to make up to 3,421 employees redundant in Spain, pursuant to the company’s restructuring plan.
The Spanish telecom company said Wednesday that the job cuts, which will cost around 1.3 billion euros ($1.42 billion) before tax, will run until Dec. 31, 2026, and could be extended for another year. did.
Telefonica said that employee retirements are expected to take place in the first quarter of this year, and that employees with at least 15 years of service who will be 56 or older in 2024 will be able to participate in the agreement.
The headcount reductions will allow the company to save an average of around 285 million euros in direct costs per year from 2025, while the impact on cash generation will be positive from this year.
Telefonica said it and the union are negotiating a workforce adjustment plan in line with the company’s organizational, technical and production needs.
According to its 2022 annual report, Telefonica employed 20,947 people in the domestic market.
In December, the company proposed a workforce restructuring that would affect 5,124 jobs in Spain, but unions argued that the number of jobs affected needed to be significantly reduced.
Email Andrea Figueras at andrea.figueras@wsj.com.