Telefónica agrees with unions to cut 2,700 jobs in Spain

The Spanish telecommunications company Telefónica announced on Tuesday an agreement with the unions to cut 15% of its staff in Spain, through a voluntary departure plan for 2,700 employees that will cost 1,500 million euros.

This plan, which will materialize in 2022, will affect employees over 55 years of age and with a seniority in the company for more than 15 years, announced the company, which has a workforce of 18,500 people in Spain.

It was “backed by the majority unions,” Telefónica said in a statement.

Diego Gallart, from the UGT union (General Union of Workers), told AFP that the plan was “a necessary evil” and that “the fundamental objectives” were achieved.

“We wanted to give security to the squad and guarantee the future of those who remain,” he said.

In recent years, Telefónica has faced strong competition from low-cost companies and heavy debt of some 25,000 million euros (28,300 million dollars).

“Average annual savings” that the plan will entail “are estimated to be over 230 million euros as of 2023,” the company explained in a statement.

In 2019, the group implemented a voluntary departure plan, aimed at workers over 53 years of age. He planned to include 5,000 people, but only 2,600 people accepted.

Telefónica, very present in Latin America, has been carrying out a drastic reorganization of its activities since the end of 2019, to focus on the markets that it considers the most promising: Spain, United Kingdom, Germany Y Brazil.

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