Vodafone Spain plans to chop as much as 515 jobs amid intense competitors

A Vodafone brand is seen on a cell web dongle on this photograph illustration, November 9, 2010. REUTERS/Suzanne Plunkett/Illustration

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MADRID, Sept 15 (Reuters) – British telecommunications firm Vodafone (VOD.L) stated on Wednesday its Spanish unit deliberate to chop as much as 515 jobs, primarily in its industrial operations, because it faces “difficult situations on the aggressive Spanish market”.

The corporate stated it might meet with unions on the finish of September and open a one-month negotiation interval to put off as much as 12% of its Spanish workforce.

“For some years now, intense value competitors and the drift in direction of low-value charges in Spain has led to a pointy fall in revenues and a big margin deterioration,” Vodafone Spain stated in an announcement.

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Labour unions denounced the transfer as an try to cover executives’ failure to redirect the corporate and known as for innovation and larger effectivity as a substitute of job cuts.

“That is Vodafone’s fourth spherical of layoffs [in eight years] … and represents lawmakers and regulators’ incapability to offer sustainability to a key sector essential to the digital economic system of the longer term,” the UGT union, which holds 50% of employees’ negotiating votes, stated in an announcement.

Vodafone is the newest cell and broadband operator to hunt cuts to its workforce after France-based Orange (ORAN.PA) introduced it was shedding 485 staff in Could, citing Spain’s more and more low-cost, hyper-competitive telecoms sector. learn extra

Vodafone described the collective layoff bid as a necessary step to enhancing operational returns.

“This comes because of the deterioration Vodafone has suffered available in the market, and the losses it recorded in current monetary outcomes,” one supply with information of the matter advised Reuters. “However the purpose is to create extra jobs than these being misplaced by end-2022 – notably in digital areas.”

Spain’s telecommunications sector has misplaced round half its jobs up to now 20 years, specialists estimate.

UGT stated talks would start on the newest on Sept. 28.

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Reporting by Emma Pinedo and Clara-Laeila Laudette
Modifying by Nathan Allen and Mark Potter

Our Requirements: The Thomson Reuters Belief Ideas.

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