Telefónica considers 5,000-plus layoffs as part of cost overhaul

Telefónica has proposed laying off more than 5,000 workers in Spain as part of a sweeping cost-cutting plan tied to its updated strategy, the unions UGT and CCOO said on Monday.

The unions told Reuters that the company aims to cut 5,040 jobs across several domestic units, a move that would affect roughly 20% of Telefónica’s 25,000-strong workforce in Spain.

UGT said the proposal includes reducing staff by 41% at Telefónica de España, 31% at Telefónica Móviles and 24% at Telefónica Soluciones. The union also said Telefónica wants to eliminate nearly a third of the roles at its subscription TV unit Movistar+.

Telefónica declined to comment on the proposed cuts. The company is expected to meet unions again on Tuesday to outline plans for three additional business units.

UGT said it has insisted that any headcount reduction must be voluntary and centred on early-retirement measures rather than compulsory layoffs.

The planned restructuring comes as European telecom operators face years of weak revenue growth, rising investment demands and mounting pressure from shareholders to streamline operations. Industry executives have called for consolidation and cost discipline as competition intensifies and margins shrink.

Telefónica has already been trimming its workforce. Last year, it cut around 3,400 jobs in Spain, a move the company said would lower annual costs by €285 million from 2025.

Automation, network modernisation and the shutdown of traditional copper lines in favour of fibre-optic networks have enabled operators to function with smaller teams, accelerating staff reductions across the sector.

Further negotiations between Telefónica and the unions are expected in the coming weeks, with both sides signalling that the scale and structure of the cuts remain subject to agreement.