Telefonica’s Workforce Restructuring Plan Draws Union Attention
Telefonica has outlined a significant workforce reduction proposal in Spain as part of its broader efficiency strategy, prompting ongoing discussions with unions.
Telefonica has introduced a proposal to reduce more than 5,000 positions across its Spanish operations as it begins a new phase of organisational restructuring aimed at improving long-term efficiency and adapting to industry-wide changes.
The plan outlines a potential reduction of 5,040 roles across several business units, representing a substantial organisational shift within one of Spain’s largest telecommunications employers.
According to union representatives, the proposed cuts would span different divisions within the company, with 41% of positions affected in Telefonica de España, and notable portions in Telefonica Moviles and Telefonica Soluciones.
Together, these reductions would account for about one-fifth of the company’s domestic workforce, which currently stands at around 25,000 employees across various operational areas.
Union groups have also noted that Telefonica has proposed restructuring its Movistar+ subscription TV service, including a staff reduction of approximately 32% as part of the broader streamlining efforts.
Company officials are expected to continue discussions with workers’ representatives, with another meeting planned to address proposals for additional units within Spain.
Union organisations have stated that they prefer any workforce adjustments to be implemented through voluntary measures, with early retirement pathways considered the most suitable approach for minimising disruption.
This stance reflects a long-standing practice within the Spanish telecommunications sector, where workforce transformation processes historically favour negotiated and voluntary exits.
The proposed restructuring comes at a time when telecom companies across Europe are revisiting operational models, responding to persistent competitive pressure and shifting technological requirements.
Many operators are navigating revenue stagnation, rising investment needs, and investor expectations for improvements in profitability and organisational efficiency.
Industry observers highlight that automation and advances in network technology have reduced the need for large workforces, particularly as older systems such as copper networks are replaced by more efficient fibre-optic infrastructure.
Telefonica itself implemented a sizeable restructuring last year that reduced its workforce by around 3,400 employees, a move that the company projected would generate annual cost savings beginning this year.
The latest proposal aligns with similar measures in other major European telecom organisations, where modernisation plans increasingly revolve around digital tools, streamlined operations, and network transformation.
Analysts point out that such shifts reflect broader trends in the sector, as telecom firms aim to remain competitive while preparing for future technological investments.
The discussions between Telefonica and Spain’s major unions are expected to continue over the coming weeks, with both sides working to evaluate the impact and structure of any final agreement.
Union representatives emphasise the importance of maintaining worker protections during the negotiation process, stating that organisational transformation must balance operational needs with social responsibility.
The outcome of these discussions is likely to shape the company’s long-term human resources framework, influencing workforce composition, digital capability requirements, and operational direction.
As the restructuring proposal moves through its negotiation phase, it remains a central point of focus within Spain’s business community and the broader European telecom landscape.
