Telefonica said earlier this week it had reached an agreement with labor unions to reduce its workforce in Spain by 15% through voluntary redundancies in a plan estimated to cost the company EUR 1.5 billion ($1.7 billion) in 2021.
By cutting 2,700 jobs in an increasingly competitive market in early 2022 will allow Telefonica to generate annual savings of more than EUR 230 million from 2023, the Spanish telecoms group said in a regulatory filing.
The programme, which is available to all workers born in 1967 or earlier and having at least 15 years of employment at Telefonica, is expected to limit the percentage of departures from some areas, the company said.
“The impact on cash flow generation will be positive in 2022 as will the booking of savings, since the employees will leave during the first quarter of 2022,” the telecoms group said in the filing.
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