MADRID: Telefonica has proposed laying off 5,040 people in Spain as part of cost-cutting efforts envisaged in its new strategy, trade union UGT said on Monday.
If carried out, the layoffs would affect 41% of employees in the Telefonica de Espana unit, 31% of Telefonica Moviles and 24% in Telefonica Soluciones, adding up to around 20% of Telefonica’s staff in Spain of roughly 25,000.
The company is set to meet again with unions on Tuesday to present its proposal for layoffs at another four domestic units.
UGT added it had demanded that any measures adopted be structured as a strictly voluntary process based on early retirement.
The move follows a wider trend among European telecoms facing years of stagnant business and pressure to slim down, as investors push for consolidation across the sector.
Telefonica also cut about 3,400 jobs last year, which it said would reduce its costs by 285 million euros ($329 million) per year from 2025.
Automation and the withdrawal of the old copper network allow telecom companies to operate with fewer staff.
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