For the first time in twelve years, the operator chaired by José María Álvarez-Pallete will apply an ERE (Employment Regulation File) that will affect thousands of workers. In recent years, the telecom company chose to apply a voluntary resignation plan that allowed former workers to collect a large percentage of their salary until retirement age. With the application of the ERE the company will save costs and eliminate duplication in hundreds of jobs.
More than 2000 employees will lose their jobs
The operator has made a tough decision that is also necessary taking into account the situation of the telecommunications sector, which has experienced unprecedented destruction of value. This is a measure that other giants have also applied to slim down their templates. In the United States, all the Internet giants have been applying massive layoffs to reduce their workforces. For exampleAmazon fired in March to more than 9,000 employees and last January Microsoft was charged at 5% of the workforce affecting more than 10,000 people. In Spain, the size of many companies is also causing cuts in staff, which, no matter how painful they may be, are necessary to adapt to new times.
Telefónica sat down today with the majority unions (UGT, CCOO and Sumados-Fetico) to begin negotiations that point to thousands of departures, some media speculate with 2,500 layoffs but, as ADSLZone has learned, this figure is not confirmed. The next meeting will be held on November 30 and from that moment on all the conditions will be known.
12,000 fewer employees in recent years
Since the last ERE applied in 2012 Thousands of employees have left with the famous individual separation plans (PSI). The most important was the first in which 6,300 employees applied with very favorable conditions for the workforce. In the second and third, between 2,500 and 3,000 employees left.
Entry of Saudi Arabia or the SEPI in Telefónica
For months there has been speculation about the possibility that the SEPI (State Company of Industrial Participations) will acquire 5% of the operator to stop the emergence of Saudi Arabia, which aspired to acquire 10% of the Spanish telecom company. Although at the moment it is all speculation, some media suggest that said ERE is applied precisely to clean up the operator’s accounts and slim down the company’s large workforce. The reality is that this possibility has been on the table for a long time due to the imperative need to reduce costs in an economic situation where interest rates suffocate to indebted companies and where negative stock market performance requires forceful actions to regain investor confidence.
The adjustment of the workforce occurs in a complicated environment where we are still pending the merger of Orange-MásMóvil and the new strategy of Zegona, which has just bought Vodafone and is going to shake up the market even more. Although the results of Telefónica de España are really positive, showing growth in such a complicated environment, the ERE was necessary and unfortunately it will not be the only listed giant that has to apply a similar measure. Even small, trendy companies like HELLO, LUZ They have had to lay off a significant percentage of the company in order to survive.