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Telefónica to slash 5,100 jobs in Spain by 2026

AFP
AFP - [email protected]
Telefónica to slash 5,100 jobs in Spain by 2026
Concerns over Telefónica's debts have contributed to a slide in its share price. (Photo by Yuri CORTEZ / AFP)

Spanish telecoms giant Telefónica will axe nearly 5,100 jobs in its home market by 2026 - roughly one third of its posts in Spain - a union source said on Monday.

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The staff cuts, which were announced during a meeting between management and unions, will affect all areas of the debt-laden company's business in Spain, the source told AFP.

Spain's largest telecoms company employs about 16,500 people in its home country, while its global workforce is over 100,000. It is present in 12 nations including Brazil, Britain and Germany.

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Contacted by AFP, Telefónica confirmed the labour "adjustment" but declined to say how many jobs it intended to axe.

A number of European telecoms firms, including BT and Vodafone, have announced job cuts this year as they grappled with intense competition in an increasingly low-cost market.

Like most of its European peers, Telefónica is struggling with heavy debt levels that have raised investor concerns over its solvency due to rising interest rates.

To reduce its debt, the company has sold off assets in recent years, including its towers portfolio in Europe and Latin America to US infrastructure specialist American Tower for €7.7 billion ($8.4 billion) in 2021.

Concerns over Telefónica's debts have contributed to a slide in its share price from nearly €23 in 2007 to now just over €4. The company posted a net profit of €2 billion last year.

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