In an effort to decrease costs and adjust the company’s size to the present market, Telefonica informed unions on Monday that it was trying to remove around 5,100 positions in Spain by the year 2026. A spokeswoman provided this information for the UGT Union of Spain.
The largest telecom company in Spain employs about 21,000 people in the country where it is based, but the company has more than 103,000 employees worldwide.
At the same time Telefonica and the unions began negotiating the layoffs, the union representative stated that the firm chose based on productivity, organization, and technical grounds.
Telefonica acknowledged the labor “adjustment” in a statement, but the business opted not to reveal the precise number of positions it intended to cut.
Because automation and the replacement of the copper network with optic fiber require significantly less labor, the company has consistently worked to streamline its payroll over the past few years for this reason.
Late in 2021, the most current proposal to reduce employment, which would impact around 2,700 workers, was disclosed.
The actual number of job cutbacks may be lower than the 5,100 that the corporation has targeted, according to Diego Gallart, a spokesperson for the United Group of Workers (UGT). The company will discuss the scope of the job cuts with the union.
The next meeting between unions and the firm to negotiate the circumstances of the layoffs will take place next week.
The firm has implemented these changes as part of its three-year strategic plan to increase profitability by reducing capital expenditures, increasing revenue, and reducing expenses.
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