Telefónica proposes mass layoff scheme that could affect over 5,100 staff

Telefónica has put forward mass layoff proposals to unions that could affect over 5,100 staff, according to UGT, the largest union in the Spanish multinational telecommunications company. 

The telecom giant, which owns brands such as Movistar and O2, has identified a "surplus of jobs" of 5,124, without detailing what the total number of layoffs will be. 

As part of an Employment Regulation File, known as an ERO in Catalan and ERE in Spanish, Telefónica is hoping to let go of workers who have been at the company for a minimum of 15 years, and who were born before 1968.  

The jobs affected will mainly affect the subsidiary Telefónica España (4,805), with lesser impact on Telefónica Móviles (958) and Telefónica Soluciones (81). 

The UGT union has reiterated that "there will be no agreement in the ERO without an agreement that protects guarantees and stability." 

16,000-strong workforce 

The telecom firm currently has a workforce of 16,000 people in Spain. 

Management had already communicated their intention to go ahead with job cuts during meetings with workers' representatives, and on Monday confirmed the "surplus" figure of 5,124. 

UGT has clarified that the number of surplus jobs and the number of layoffs that the company will propose are two different concepts, as the surplus of staff can also be solved with "requalification and changing role, through upskilling and/or reskilling, internalizations." 

The actual number layoffs, which has not yet been published "will inevitably be lower in number," the union said. 

Telefónica has implemented three voluntary retirement plans since 2015, with more than 11,000 staff departing.