Telefonica has outlined a sweeping restructuring plan that will eliminate more than 5,000 jobs across its Spanish operations. The move marks one of the company’s largest domestic workforce adjustments in recent years and reflects the growing pressure on Europe’s telecom sector to operate more efficiently in a slow-growth market.
The decision follows a prolonged period of weak revenue expansion in Spain, prompting Telefonica to shift toward a leaner and more automated operating model.
The company intends to cut 5,040 positions, affecting multiple subsidiaries. A significant portion of the reductions will come from its core Spanish unit, where a large share of employees support traditional network operations. Mobile and technology divisions are also expected to see substantial downsizing.
A central part of the company’s strategy involves phasing out legacy copper networks and expanding digital infrastructure. These technological upgrades reduce the need for extensive manpower, enabling the company to deliver services with fewer employees. The current plan builds on a restructuring drive launched last year, when more than 3,000 positions were eliminated. Those cuts are projected to yield significant annual savings beginning next year.
However, the latest move is likely to face resistance. Previous restructuring rounds relied heavily on voluntary exits, and worker groups are expected to challenge any changes to that approach. Such disputes could slow the rollout of cost-saving measures or increase the financial burden of the restructuring. The announcement also underscores broader industry trends.
