September 15, 2021
Madrid (Reuters) -British telecommunications company Vodafone faces “a tough situation in the highly competitive Spanish market” on Wednesday, so the Spanish unit plans to cut up to 515 jobs, primarily in commercial operations. Said.
The company said it would meet with the union at the end of September and open a one-month negotiation period to dismiss up to 12% of Spain’s workforce.
“In the last few years, fierce price competition in Spain and the shift to lower prices have sharply reduced revenues and significantly worsened margins,” Vodafone Spain said in a statement.
Trade unions have blamed the move in an attempt to hide that executives did not redirect the company, calling for innovation and efficiency rather than headcount reduction.
“This is Vodafone’s fourth layoff. [in eight years] … And it represents the inability of lawmakers and regulators to provide sustainability to the key sectors that will be critical to the digital economy of the future, ”the UGT union, which holds 50% of workers’ negotiating votes, said in a statement. increase.
Vodafone cites Spain’s increasingly low-cost and competitive telecommunications sector after France-based Orange announced in May that it will dismiss 485 employees, and is looking to reduce its workforce. Mobile and broadband operators.
Vodafone described bulk layoff bidding as an important step in improving return on investment.
“This is the result of the deterioration Vodafone suffered in the market and the losses recorded in recent financial results,” a source familiar with the matter told Reuters. “But its purpose is to create more jobs than will be lost by the end of 2022, especially in the digital arena.”
According to experts, the Spanish telecommunications sector has lost about half of its work in the last two decades.
The UGT said negotiations would begin on September 28 at the latest.
(Report by Emma Pinedo and Clara-Laeila Laudette, edited by Nathan Allen and Mark Potter)
Vodafone Spain plans to reduce employment for up to 515 people in fierce competition
Source link Vodafone Spain plans to reduce employment for up to 515 people in fierce competition