Telefonica Spain has signed its third collective bargaining agreement with the main trade unions, signaling further job cuts at the telecoms giant.
Telefonica Spain said in a news statement that the term of the collective bargaining agreement is until December 31, 2026, with the possibility of an extension for another year.
The agreement was unanimously approved by both company and worker representatives (UGT, CCOO, Sumados), with 24 votes in favor, 0 votes against, and abstentions.
Telefonica said the main objective of this agreement is to move the company towards developing a more adaptive posture and increasing its digital readiness to face future challenges in a highly competitive and rapidly changing landscape. He said that it is to lead.
The core of this agreement is to strengthen talent acquisition and retention, direct investment towards developing unique workforce competencies through reskilling initiatives, strengthen competitiveness and position Telefónica Spain as a pioneering work methodology. Positioning us as a pioneer in promoting work-life balance based on autonomy and responsibility. , Contribution to results.
At the same time, the agreement includes the implementation of collective redundancies for a total of 3,421 employees. Eligibility requirements include employees who are at least 56 years old and have at least 15 years of service as of 2024. However, strict benchmarks are in place and in some cases registrations may be restricted in important domains or additional redundancy may be required given business exigencies.
The estimated present value of the plan stands at approximately EUR 1.3 billion (pre-tax) and has no immediate cash impact. The forecast is for average annual savings of around 285 million euros from 2025 onwards. In particular, a positive impact on cash flow generation is expected from his 2024, primarily materializing the expected savings after the retirement of employees scheduled for the first quarter of his 2024. .