Telefonica Spain, alongside key trade unions, has inked the Third Collective Bargaining Agreement, indicating further round of job cut at the telecom giant.
Telefonica Spain in a news statement said the Collective Bargaining Agreement will be for a period until December 31, 2026, extendable by an additional year.
This accord, endorsed unanimously by both the company and workers’ representatives — UGT, CCOO, and Sumados — garnered 24 affirmative votes, zero objections, and no abstentions.
Telefonica said the main objective of this agreement is to steer the company towards heightened digital preparedness, fostering a more adaptable stance to confront forthcoming challenges within an intensely competitive and rapidly transforming landscape.
A core focus of the agreement revolves around bolstering talent acquisition and retention, channeling investments into cultivating distinct workforce competencies via reskilling initiatives, enhancing competitiveness, and positioning Telefonica Spain as a trailblazer in pioneering work methodologies and fostering work-life equilibrium grounded in autonomy, accountability, and contribution to outcomes.
Concurrently, the agreement entails the execution of Collective Redundancies encompassing a total of 3,421 employees. Eligibility criteria encompass employees aged 56 or older in 2024, boasting over 15 years of service. However, stringent benchmarks have been set, possibly limiting enrollments in critical domains or necessitating additional redundancies predicated on business exigencies.
The estimated present value of this plan hovers around 1,300 million euros (pre-tax), with no immediate cash ramifications. Projections suggest an annual average saving of approximately 285 million euros from 2025 onwards. Notably, a positive impact on cash flow generation is anticipated from 2024, with the envisaged savings materializing post the employees’ departure, slated predominantly for the initial quarter of 2024.