Telefónica cuts 2,400 jobs at cost of €1.4bn
January 21, 2022
From David Del Valle in Madrid
Telefónica’s redundancy plan will finally affect 2,418 workers at a cost of €1.4 billion. It represents 81 per cent of the total planned dismissals (2,982), and is lower than the previous redundancy plan in 2019.
The Spanish telco will pay 68 per cent of the salary for those dismissed who were born in 1967 or later, and 65 per cent for those born before 1967, until the retirement age of 65.
The job redundancy plan is aimed at reducing costs following the drop in revenues due to tough competition in the market. This is the third job reduction implemented by Telefónica in the last five years – the first in 2019 saw the exit of 2,632 workers aged over 53, and in 2016, some 6,300 jobs were cut.
The redundancy plan will affect the Spanish subsidiaries – Telefónica de España, Telefónica Móviles and Telefónica Soluciones – which overall have 18,000 workers out of the total workforce of 28,500.
The move comes at a time when its rivals Vodafone and Orange are also executing similar redundancy plans affecting some 400 employers at each company.