The operator is considering a new workforce reduction which, according to market sources cited by Expansión, could involve between 6.000 and 7.000 job losses in Spain . Although the company states that "there is no plan for a collective dismissal procedure (ERE) on the table at this time ," the move would take place after the presentation of the strategic plan on November 4 and before the end of the fiscal year.
The main change would be the expansion of the scope beyond the three CEV companies (Telefónica de España, Móviles, and Soluciones), incorporating other subsidiaries and the corporate headquarters . In the previous agreement reached in January 2024, the departure of 3.421 employees was agreed upon , with an approximate provision of €1.300 billion and estimated annual savings of €285 million.
Scope of adjustment and affected areas
The bulk of the impact would continue to be concentrated in the three CEV companies, although the new process would include, for the first time, a wider range of subsidiaries . Among the units under consideration are Telefónica Soluciones Audiovisuales, Telefónica Global Solutions, Telefónica R&D, Telefónica Tech, Telxius, Telyco (store network), and Movistar+ , in addition to the potential impact on the corporate headquarters.
Depending on the scope, the initial figure of 6.000 could grow to 7.000 employees within a workforce of approximately 25.000 in Spain. As is typical, negotiations tend to reduce the target number of job cuts, as happened in 2023, when the final reduction was 33% lower than the initial proposal.
The company emphasizes that it is exploring alternatives on all fronts, while the unions maintain that no formal communication regarding a workforce reduction plan has yet been issued. This does not preclude the possibility of a new collective dismissal procedure (ERE) from being among the options being considered.
In parallel, the Executive maintains a presence in the capital through SEPI (10%), along with other relevant partners such as STC (9,9%) and CaixaBank (3,5%) , an institutional backing that adds nuances to any significant labor decision.
Some analysts believe that, if confirmed, this adjustment could strengthen operational efficiency and cost discipline; market estimates place potential savings at up to 500 million , depending on the scope and final conditions.
Planned schedule and effects on the accounts
The proposed roadmap involves communicating the plan to the unions after November 4th , presumably between mid-November and early December. Following this notification, the law stipulates 15 days to establish negotiating committees and a 30-day period to reach an agreement.
Although the aim is to finalize the process before the end of the year, it is not essential: in 2023 the agreement was signed on January 3, 2024 , and yet the provision of approximately 1.300 billion was charged to the fourth quarter of 2023. The company plans to concentrate the accounting impact in 2025 if the schedule allows.
This approach aligns with a fiscal year already under pressure from international restructuring and the divestment of assets in Latin America. In the first half of 2025, the group recorded losses of €1.355 billion , comprising €1.913 billion from discontinued operations and a profit of €558 million from continuing operations.
By grouping extraordinary costs (staff reduction and restructuring ) into a single year, the following year would start with a lighter cost base. If the volume of departures were to reach the high end of the range (6.000-7.000), the provision would foreseeably exceed the €1.300 billion recorded in the last major restructuring.
At the same time, management frames the process within a strategy of simplification and automation ( including the application of networked artificial intelligence and attention), with the aim of gaining competitive traction and room for eventual corporate moves.
Conditions, profiles and union negotiation
If activated, the plan would follow the same lines as the last process: prioritizing voluntary participation and focusing on longer-term employees, with details to be finalized at the negotiating table. The company is trying to avoid forced departures , although it reserves that option if voluntary participation does not meet its target.
Compensation could be structured based on salary and seniority, as in previous processes. In 2024, voluntary enrollment exceeded the quota (106%) , and the agreed plan resulted in an estimated annual labor cost savings of €285 million.
The UGT union has requested access to the Strategic Plan before any measures are taken and reiterates the job guarantee in place until 2026 at the CEV (Valencian Business Consortium). The union insists on preserving the principles of voluntary redundancies and avoiding forced dismissals , while also demanding a negotiation framework aligned with the new strategic cycle.
From the market—pending confirmation—some interpret that a cost reduction of this magnitude would improve the group's efficiency . Some firms estimate that, depending on the circumstances, the savings could approach €500 million, while the accounting impact would be greater than that of the last workforce reduction plan if the high threshold for cuts were reached.
It is now up to the operator to agree on a timetable, scope, and conditions with the workers' representatives, in a process that combines financial demands with a challenging competitive environment and accelerated technological transformation.
Without officially confirming any plans, the group is moving towards an adjustment that could affect more companies than in previous instances , with a timeline strictly defined by law. If it materializes as currently being discussed, the accounting impact and cost reductions would be significant, while the negotiations will determine the final figure and the terms under which it is reached.
