Major restructuring underway at Telefónica
One of Spain’s largest telecommunications giants has announced the start of a mass staff reduction procedure. Telefónica has notified unions of its intention to initiate an ERE (Expediente de Regulación de Empleo) in seven of its main subsidiaries simultaneously. Up to 5,319 employees could be affected, marking the largest such process in recent years.
The company explains these drastic measures as necessary to adapt to new organizational, technological, and production realities. Among the affected units are Telefónica de España, Telefónica Móviles, Telefónica Soluciones, and Movistar+. The largest number of layoffs is expected in the main division—more than 3,600 people, nearly half the workforce.
Union stance and demands for ERE conditions
The UGT union immediately stated its position: any layoffs must be entirely voluntary and accompanied by an extension of the collective agreement (Convenio de Empresas Vinculadas, CEV) until 2030. Worker representatives insist that the process mirror the 2019 ERE, which prioritized early retirement and social guarantees.
Without significant progress in talks to extend the CEV, unions are unwilling to compromise. They argue that only stable and transparent working conditions will allow staff to confront the challenges set before them by the company’s new strategic plan.
Another major union, CCOO, has also joined the discussion. Its representatives are demanding that the procedure be universal, voluntary, and include fair compensation for all affected employees.
Details of the layoffs and financial aspects
According to internal documents, the layoffs will affect 41% of employees at Telefónica de España, 31% at Telefónica Móviles, 24% at Telefónica Soluciones, and over 32% at Movistar+. The company plans to announce the scale of job cuts in other divisions soon, including Telefónica S.A., Telefónica Global Solutions, and Telefónica Innovación Digital.
The previous round of layoffs, completed in January 2024, cost the company around 1.3 billion euros. At that time, 3,420 people took part in the program, with average compensation of approximately 380,000 euros per employee. According to management estimates, the new phase of restructuring should help save up to 3 billion euros by 2030, and around 2.3 billion by 2028.
Impact on the labor market and future steps
Telefónica expects to conclude negotiations with unions by the end of this year or early 2026, aiming to avoid negative effects on the next fiscal period’s results. If agreements are reached, the company will be able to implement its strategy to optimize costs and adapt to new market conditions.
A massive round of layoffs at one of the country’s largest companies is certain to impact the labor market and social stability. Questions about the future of employees, the terms of their departure, and new job opportunities remain unresolved. Trade unions continue to insist on maximum protection for staff interests and the preservation of social guarantees.
Negotiations between management and employee representatives are expected to continue in the coming weeks. The outcome of these talks will determine not only the fate of thousands of workers but also the future direction of the entire industry.
