Spain’s largest telecommunications company, Telefónica, is on the verge of significant changes. The management is preparing a large-scale restructuring that will affect thousands of employees across the country. Preliminary estimates indicate that at least 6,000 jobs will be cut, and this number could eventually rise to 7,000. A final decision will be made after the approval of the new strategic plan, which the company is set to present in November 2025.
Unlike previous programs, the current plan will cover not only the main divisions, such as Telefónica España, Telefónica Móviles, and Telefónica Soluciones, but also subsidiaries: Telefónica Soluciones Audiovisuales, Telefónica Global Solutions, Telefónica I+D, Telefónica Tech, Telxius, Telyco (retail network), and Movistar+. Even the corporate center, which previous initiatives had almost entirely bypassed, will now be subject to changes.
The company currently employs around 25,000 people. However, during negotiations with unions, the number of layoffs usually decreases. Official notification of the procedure’s launch is expected to be sent to worker representatives immediately after the strategy’s presentation, that is, between mid-November and early December. Negotiating teams will have a maximum of two weeks to form, and reaching an agreement will take up to one more month. If the process starts on time, an agreement could be signed by the end of 2025, allowing the associated costs to be included in the current fiscal year.
The company’s financial situation this year has been challenging: losses for the first half exceeded 1.3 billion euros, partly due to the sale of assets in Latin America. Telefónica aims to consolidate all restructuring costs within a single reporting year, to avoid carrying them over into 2026. The last time more than 3,400 employees left the company, the annual payroll savings amounted to 285 million euros. If the current plan is implemented in full, the economic impact will be even more significant, although compensation expenses are also expected to rise.
It is not yet clear which subsidiaries will be affected by the cuts, but it is evident that the main impact will fall on three key divisions, where around 5,000 jobs are set to be eliminated. Changes are also expected at the corporate center, where layoffs were previously rare. Typically, initial projections are adjusted during negotiations: in 2023, more than 5,000 job cuts were planned, but ultimately just over 3,400 employees left.
The new program will resemble the previous one, with priority given to voluntary departures, mainly for employees over the age of 55. However, if the targets are not met, mandatory measures may be considered. The main goal is to improve efficiency and flexibility, as well as to introduce modern technologies, including artificial intelligence for process automation. The government’s commitment to modernization remains firm, as it holds a 10% stake in the company through SEPI.
