Spanish carrier Telefonica to slash 5,500 jobs at $2.9 billion cost in bid to bring down operational expenses

Spanish telecommunications giant Telefonica SA is preparing to cut 5,500 jobs at a cost of $2.9 billion as part of a comprehensive cost-cutting plan. Bloomberg It was reported on Monday.

In a filing to regulators, the company reportedly signed an agreement with unions to introduce severance plans for about 5,500 employees, saying it would save more than $700 million annually.

Affected employees are expected to leave from the beginning of next year, and the company anticipates a positive impact on cash generation from 2026.

The layoff move comes after Telefonica chairman Marc Murtra last month outlined plans to cut operating expenses after trimming the carrier’s 2025 cash flow outlook and halving its dividend.

Telefonica’s shares are down 14% this year and are currently trading at their lowest level since 2022. Bloomberg.

The last major layoff at Telefonica took place in 2023, when the operator cut 3,421 jobs in Spain, accounting for around 16% of its workforce.

In Spain Telefonica currently employs around 25,000 people. Meanwhile, the company’s global workforce consists of approximately 100,000 people. AFP.

(This is a developing story. Check back for updates)