\tTelefonica\u2019s board could approve measures designed to cut up to 20 per cent of its Spanish workforce in a meeting scheduled for later today (10 September), El Pais reported.<\/p>\n
The plan offers early retirement to employees aged over 53 years and, if approved, will then be put to relevant trade unions. It will likely take a similar shape to the company\u2019s existing Individual Employment Suspension Plan, which has led to the departure of 6,300 employees since 2016.<\/p>\n
Its proposed measure follows a number of attempts by Telefonica to cut overheads and raise funds to slash its huge debt pile.<\/p>\n
After nine successive quarters of cutting debt, at end-June the operator still had a deficit of \u20ac40 billion [1]. In recent months the company signed network sharing deals in the UK, Brazil and Germany in a bid to reduce costs associated with developing 5G [2] and upgrading 4G networks.<\/p>\n
In addition to making savings to its ongoing costs, in Q1 it struck a deal to sell three of its operations in Central America to Millicom [3] and two to America Movil [4]. Last week El Economista reported Telefonica was also assessing the sale of its Movistar Ecuador business.<\/p>\n
Telefonica is not the only operator looking to cut costs in Spain. In January, Vodafone Spain announced a plan [5] to cut 20 per cent from its workforce due to \u201ceconomic, productive and organisational reasons.\u201d<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/telefonica-hit-by-currency-woes-sets-uk-5g-date\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/vodafone-o2-finalise-uk-5g-network-sharing-pact\/
\n[3] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/millicom-finalises-movistar-panama-deal\/
\n[4] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/america-movil-snaps-up-telefonica-assets\/
\n[5] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/vodafone-spain-lines-up-job-cuts\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Telefonica’s board could approve measures designed to cut up to 20 per cent of its …<\/p>\n
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