Spain's leading telecom company, Telefonica SA TEF, reportedly disclosed to the unions its plans to cut about 5,100 jobs in Spain by 2026.
The move reflects efforts to lower costs and adapt the company's size to the current market, reported Reuters.
The company has around 21,000 employees in Spain, with a global workforce of over 103,000.
As per the report, Telefonica based the decision on productivity, organization, and technical reasons, the union spokesman said as Telefonica and the unions started negotiating the layoffs.
As per the report, the company has regularly streamlined its payroll over the past few years as automation, and the replacement of the copper network by optic fiber require much less labor.
In September, Telefonica reported a third-quarter revenue growth of 11.2% Y/Y to €10.34 billion. The company doubled its free cash flow to €1.13 billion.
Price Action: TEF shares are trading higher by 0.23% at $4.33 premarket on the last check Tuesday.
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