Telefonica provides redundancy for more than 3,000 employees, union says

FILE PHOTO: The logo of the Spanish telecommunications company Telefonica at its headquarters in Madrid
FILE PHOTO: The logo of Spanish telecommunications company Telefonica at its headquarters in Madrid, Spain, May 12, 2021. REUTERS / Sergio Perez / File Photo

November 30, 2021

MADRID (Reuters) – Telefonica will make a voluntary offer of a surplus of employees born in 1967 or earlier and with at least 15 years at the company, union UGT said on Tuesday, calculating that 3,261 employees will satisfy those conditions.

Europe’s third-largest telecommunications group and direct employer of 16,000 people in Spain will limit its acceptance of offers to 60% of eligible employees, UGT said, adding that KPMG consulting team helped develop the plan.

UGT representative Diego Gallart told Reuters.

“Most of the redundancy will be provided in the deployment, network maintenance, and more basic customer service departments,” said Gallart.

“But it is difficult to say whether consumption is in line with the previous average of 70% because senior staff are facing worse conditions than previous packages and have may not find current conditions appealing.”

Telefonica declined to comment on what it said were ongoing negotiations with unions.

A source with knowledge of the matter initially told Reuters that 2,000-4,000 jobs would be cut, making Telefonica the third-biggest telecommunications group to look for redundancies in Spain this year. similar moves by Vodafone and Orange.

Telefonica is struggling with stiff competition in the increasingly low-cost Spanish market as well as pressure from investors.

The mobile and broadband operator posted third-quarter net profit this month thanks to the business of foreign businesses.

However, core profit in Spain fell 8.9% year-on-year, and Chief Operating Officer Angel Vila told analysts that rising electricity costs will continue to affect the ability to profitability in the coming quarters.

(Reporting by Clara-Laeila Laudette; Editing by Andrei Khalip and David Goodman)

Source link Telefonica provides redundancy for more than 3,000 employees, union says

Caroline Bleakley

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