Telefonica Targets 2,700 Jobs Cut in Spain in EU1.5 Billion Plan
(Bloomberg) -- Telefonica SA reached an agreement with unions in Spain to cut about 2,700 jobs through voluntary redundancies of older workers.
The departures are expected to cost about 1.5 billion euros ($1.7 billion) that will be booked in fourth quarter earnings, the company said in a regulatory filing Tuesday.
The plan targets workers turning 55 or older in 2022 and with seniority of more than 15 years. The carrier expects to save 230 million euros yearly from 2023.
This is the third voluntary redundancy by Telefonica’s Spanish unit in five years. The first saw some 6,300 workers leave between 2016 and 2018, while some 2,600 workers took part in a plan in 2019. The unit had 18,500 workers prior to today’s announcement.
The company has been aggressively cutting costs since Jose Maria Alvarez-Pallete became chairman in 2016. The strategy has helped Telefonica to cut debt by more than half to around 25 billion euros currently.
©2021 Bloomberg L.P.