Spanish telecoms giant Telefónica is to cut nearly 5,100 jobs in its domestic market by 2026 – which equates to approximately 25% of its workforce in Spain, according to a UGT union spokesman.
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 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.
Telefónica confirmed the labour ‘adjustment’ in a statement but declined to say how many jobs it intended to axe.