Zegona Communications, a former Vodafone unit in Spain, plans to cut up to 1,200 jobs, or just over a third of its total workforce.
The plan comes after Zegona closed the 5 billion euro ($5.41 billion) acquisition of Vodafone Spain last month.
Vodafone Spain, which has kept its brand name after reaching a 10-year agreement with Zegona, said in a statement it was convinced that the layoffs were the only way to guarantee its future viability and competitiveness, Reuters news report said. Jose Miguel Garcia is the CEO of Vodafone Spain.
Vodafone Spain’s revenues were down by 8 percent and it has lost approximately 400,000 contract customers in the last two years.
The former Vodafone unit is the third-largest telecom operator in Spain after the local units of Orange and Telefonica. Zegona has previously bought and sold regional operators Telecable and Euskaltel in Spain.
Vodafone Spain is the No. 3 player in Spain with significant market shares in mobile, broadband and TV. Vodafone Spain has reported FY23 revenue of €3.9 billion, EBITDAaL of €1.3 billion and Cash Flow of €0.4 billion. Vodafone Spain’s Gigabit capable fixed network passes 10.7 million homes with access to c.95 percent coverage.
