Telefónica has announced a proposal to cut 5,040 jobs in its Spanish operations, a move that would reduce the country’s workforce by roughly 20 % (about 25,000 employees). The proposal, disclosed by the UGT union on November 24 2025, is a core element of the company’s Transform & Grow strategy, which aims to streamline operations, cut costs, and refocus on its most profitable markets.
The cost‑cutting plan follows a series of divestitures in the Hispam region and a strategic pivot toward core markets in Spain, Germany, the United Kingdom, and Brazil. Telefónica intends to use the savings to accelerate investment in fiber‑optic and 5G infrastructure, which the company views as the engine of long‑term growth. The plan also targets €3 billion in cost savings by 2030, a figure that underscores the scale of the restructuring.
Financially, Telefónica posted a net loss of €1.08 billion ($1.2 billion) for the first nine months of 2025, a sharp decline from the €1.5 billion loss reported in the same period a year earlier. The company’s previous round of 3,400 job cuts in 2024 produced €285 million in annual savings, and the new proposal is expected to add further cost discipline. The layoffs are part of a broader effort to reduce debt and improve operating margins.
Investors reacted sharply, with Telefónica’s shares falling 13 % after the announcement. The market’s negative response was driven by the combination of a large-scale workforce reduction and a simultaneous dividend cut, which signaled a shift in capital allocation toward debt reduction and infrastructure investment.
CEO Marc Murtra said the company is “making difficult decisions to reduce complexity, improve financial flexibility, and focus on high‑margin opportunities.” He added that the layoffs are a necessary step to achieve the company’s long‑term strategic goals.
The job cuts are expected to strengthen Telefónica’s balance sheet and free capital for future network upgrades, but they also highlight the company’s ongoing challenges, including a high debt load and competitive pressure in the European telecom market. The restructuring is a key part of Telefónica’s plan to return to profitability and sustain growth in its core markets.
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