Telefónica Spain surprises unions with collective layoff plan

Telefónica shifts from voluntary exits to forced layoffs

The irony is palpable. The operator, which was privatized decades ago on the grounds that public management was inefficient, has just announced a collective dismissal. Telefónica España informed unions during the second meeting to negotiate the III Convenio de Empresas Vinculadas (Agreement for Linked Companies) of its intention to file an ERE (collective redundancy procedure) for an undetermined number of workers. Labor representatives expected something else: a voluntary redundancy plan for up to 5,000 employees. Instead, they faced a formal restructuring dossier and rumors that approximately 2,500 would be affected.

What Telefónica announced and who is affected

The company confirmed that the collective dismissal impacts three entities: Telefónica de España, Telefónica Móviles, and Telefónica Soluciones. The plan includes the closure of 108 centers with "low occupancy" and the relocation of 266 employees. According to the company's own data, the Spanish subsidiary employs 27,411 workers in the country, meaning this adjustment affects a significant portion of the workforce.

The announcement came as a cold shower because weeks earlier there had been talk of a new agreed exit plan. Management claims it is simply continuing the agreement negotiations. However, the fine print reveals that an ERE and voluntary redundancy are vastly different: they differ in voluntariness, financial terms, and the number of those impacted. The surprise highlighted by union representatives is not merely a procedural detail.

How much will those leaving Telefónica receive?

This is where the analysis diverges. One school of thought argues this is a deferred negotiated dismissal: in an Ibex 35 company, everything is tied down with unions, and the ERE is the most tax-efficient formula trinc recent pension reforms, offering exits of 60-70% of salary as income rather than capital to avoid heavy taxation. It would allow those who wish to leave until retirement age.

Conversely, another perspective sees it differently: a straight "layoff" without a safety net, paying only 25 days per year worked, like any other worker. Those expecting to retire at 52 with 80% of their salary might find themselves unemployed at 50, with half the income prospects. These two narratives are incompatible, and time will tell which one proves true.

Early retirements paid for by everyone

A recurring nuance is that these golden exits are not paid solely by the company. Social security contributions and subsequent pensions effectively fall on the public system. This fuels anger among observers: dream retirements financed by the collective while others struggle to reach the retirement age of 67.

Added to this is the eternal comparison. Within the salaried sector, this line of argument suggests that high Ibex salaries—not civil servants who often bear the criticism—are those truly living well. Generous paychecks, calm workdays, and early retirement with nearly full salary. It is a perception, not a statistic, but it circulates strongly.

Union business and the photo that sums it up

Another line of criticism targets the unions directly. They are accused of not protesting and charging fees for each worker signing their exit, making the ERE profitable for them. An archive photo of the UGT general secretary and the Telefónica president shaking hands in a meeting fueled all kinds of comments.

There is also scrutiny of board positions. It is recalled that Javier de Paz, a former general secretary of the Juventudes Socialistas (Socialist Youth), holds a seat on the operator's board—reportedly earning close to one million euros annually—and the company president, who encouraged buying shares, is criticized for not being the first to provide explanations.

From monopoly to Ibex: thirty years of adjustments

This is not the first time. In 2019, a Suspension of Employment Plan affected 2,636 workers. And before that, in the 90s, commentators recall that those who left received multimillion-peseta severances, enough to buy an apartment and a beach house. The source hasn't dried up; it has just changed names.

Behind this lies the fundamental argument: more technology, less labor. Each technical leap reduces the need for people, shrinking the workforce as the company seeks cost cuts. Some also note that a large part of the customer base remains tied out of sheer inertia: contracted lines and internet with no desire to switch providers.

Does Telefónica survive with fewer people, or is this just the next round? The company says negotiations continue; available data points to a workforce that has been shrinking for years. If the diagnosis was that privatization would secure employment, the first box doesn't even check out.