MADRID (BN24)— Spanish telecom giant Telefónica SA is preparing to launch one of its largest workforce reductions in recent years, with plans to cut as many as 6,000 jobs by the end of 2025 as part of a broad restructuring tied to its accelerated withdrawal from Latin America. The layoffs, reported by business outlet Expansión, underscore a strategic pivot as the company consolidates operations in Europe and Brazil.
The job cuts will impact not only Telefónica’s primary units in Spain but also extend to its subsidiaries, including Telefónica Tech, Movistar+, and the corporate center. While the total number of roles at risk could reach up to 7,000 from a Spanish workforce of around 25,000, union negotiations are expected to bring the final figure down.
In response to the reports, a Telefónica spokesperson said the company is conducting “numerous analyses across all areas,” but added that “a redundancy plan is not on the table at this time.” Still, preparations are underway to inform labor unions after the company unveils its strategic roadmap on November 4. Under Spanish labor law, once formal discussions begin, there is a 15-day window to establish negotiating committees and a 30-day period to finalize agreements with employee representatives.
The cuts are central to Chief Executive Marc Murtra’s restructuring strategy, aimed at reducing costs and refocusing the company on more stable markets. Telefónica has already divested operations in Argentina and Uruguay and is exploring exits in Chile, Mexico, and Ecuador. Analysts from Kepler estimate the Latin American asset sales could bring in up to €3.6 billion.
Once considered a cornerstone of Telefónica’s global growth, Spanish-speaking Latin America has become a drag on earnings due to increasing competition and regional economic volatility. In the first half of 2025, the company posted a €1.35 billion loss tied to discontinued operations in the region.
Murtra plans to consolidate these losses into the 2025 fiscal year, targeting a leaner cost structure by 2026. Telefónica’s last major redundancy plan in 2023 affected 3,421 employees and delivered annual savings of €285 million. The 2025 layoffs are expected to require provisions exceeding the €1.3 billion set aside during the last round.
Despite the cuts, Telefónica aims to strengthen its core markets through targeted acquisitions and partnerships. Murtra told Reuters in September that the company remains committed to maintaining an investment-grade credit rating while eyeing potential deals such as acquiring Vodafone’s Spanish division, merging with Germany’s 1&1, or expanding holdings in Brazil.
As Telefónica’s international footprint contracts, its leadership is betting on consolidation and streamlined operations to deliver financial stability and growth in the post-Latin America era.
