Telefónica has formally informed the unions of its intention to carry out an employment regulation plan (ERE) in seven of the group's companies, including Telefónica de España.

Other groups set to be impacted include Telefónica Móviles, Telefónica Soluciones, Telefónica S.A., Telefónica Global Solutions, Telefónica Innovación Digital, and Movistar+.

Telefónica

Although the company has not yet confirmed official figures, union sources and the media estimate that between 6,000 and 7,000 employees could be affected.

The presentation of the report justifying the ERE is scheduled for November 24 and 25, and the company is hoping to reach an agreement before the end of the year to account for the costs in the 2025 accounts.

The process has already generated opposition among the unions. UGT demands that the departures be voluntary, that there be no forced layoffs and that the economic conditions be comparable to the ERE of 2024. Other unions, such as Sumados-Fetico, demand that the process be universal and non-discriminatory, with decent conditions for those who decide to leave the company.

According to the unions, the layoffs pose several strategic risks, noting that the loss of talent could slow down digitization, cloud, automation, or AI projects. The reduction of staff in critical operational areas could also undermine the resilience of network infrastructures and data centers, which are essential for the continuity of services and digital security.

The ERE is part of a cost savings plan that Telefónica has designed for the years 2026-2030, with expected operational savings of several billion euros. However, the financial cost of the ERE could affect free cash flow and future dividends, analysts warn.

Negotiations with the unions will be key to ensuring that the process does not degrade working conditions and internal cohesion, which are essential for organizational stability and the continuity of the digital transformation.

Telefónica isn't alone in announcing job cuts, with US giant Verizon confirming that it will cut 15,000 jobs last week.

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