Telefonica's Voluntary Job Cuts: A Strategic Move Amid Economic Pressures

Spain's Telefonica plans to cut over 4,500 jobs voluntarily across its operations, following union negotiations. The reductions include positions in its Spanish and global units, and subscription TV service Movistar+. This strategy aims to manage costs amid slow growth in the European telecom sector.

Spain's telecommunications giant, Telefonica, has outlined a strategy to reduce its workforce by over 4,500 positions through a voluntary agreement. The plan, which emerged from negotiations with unions, targets 3,765 jobs within Telefonica's Spanish operations, with additional cuts at global units and Movistar+.

The union representatives, including CCOO and UGT, emphasized that the voluntary nature of the proposal should eliminate the need for compulsory layoffs. This workforce reduction marks a decrease of approximately 25% from the initial number proposed.

As European telecom firms grapple with stagnant growth, Telefonica's decision reflects wider industry trends to manage costs and bolster financial sustainability. The company reduced about 3,400 jobs last year, further highlighting its commitment to financial consolidation.