Orange Spain is set to cut 485 posts, 15 per cent of its workforce in the country, as a result of a sharp fall in revenues following the negative effects of the pandemic. It is the first round of job cuts at the company since the acquisition of Jazztel in 2016.
The company will negotiate this job reduction plan with the trade unions in the coming weeks and complete the reorganisation as soon as possible.
“The telecommunications sector has been experiencing revenues losses as a result of the tough competition in the market and the great number of low cost players”, explained the company in a statement. “This puts a great challenge for the company which has been for over 20 years making intensive investments and that needs to keep on doing it in a technological transitional enviroment”.
In 2020, Orange Spain reported total revenues of €4.9 billion, down 5.9 per cent than the previous year and with an EBITDA of €1.4 billion, down 13 per cent.
Orange Spain is losing customers due to the low-cost competing offers in a crowded market also featuring O2 (Telefónica), Lowi (Vodafone), MásMóvil and Digi. To reverse the situation, Orange Spain is also planning to simplify its commercial catalogue and eliminate brands like Amena and República Móvil, according to El País.