Telefónica estimates the cost of the workforce reduction plan at €2.5 billion and the annual savings from 2028 onwards at €600 million.

BarcelonaThe "ironclad" financial discipline that Telefónica's president, Marc Murtra, announced at the last quarterly results press conference has finally come to an end for the company's workforce almost a month and a half later. This Monday, the telecommunications company and its main unions finalized a workforce reduction plan (ERE) that will ultimately affect at least 4,525 people—14 fewer than initially agreed upon—1,500 fewer than the cuts initially proposed. This process will cost the company €2.5 billion, but starting in 2028, it will generate annual savings of €600 million, the telecom company announced in a statement on Monday.

The total number of employees affected by the restructuring plan represents 26.3% of the company's workforce, which is currently undergoing a complete overhaul to adapt to changing times. The staff reduction is the most controversial measure in a cost-cutting plan with which the company—whose second-largest shareholder is the Spanish government with 10%, behind CriteriaCaixa—expects to save €3 billion. Murtra announced this in early November during the presentation of the strategic plan, where he also confirmed a dividend cut. As if this weren't enough, forty years after becoming the first Spanish company to be listed in the United States, Telefónica is now preparing to leave Wall StreetThe company and the unions also signed the renewal of the collective bargaining agreements this Monday. Regarding severance packages, the company's proposal for the seven affected business areas includes income brackets for those born between 1969 and 1971: 68% of their base salary until age 63 and 38% thereafter, with the exception of those born in 1999. Meanwhile, those born between 1965 and 1968 will receive 62% until age 63 and 34% thereafter, while for those born in 1964 and earlier, the percentages are 52% until age 63 and 35% thereafter. Distribution of redundancies

The affected workers are distributed across seven subsidiaries of the telecomOf these, three are covered by the Collective Bargaining Agreement for Linked Companies (CEV): Telefónica de España, which will cut 2,925 jobs, almost 33% of its 8,892 employees; Telefónica Móviles, with 720 affected workers, equivalent to 20% of its 3,587 employees; and 120 at Telefónica Soluciones (11% of its 1,118 employees). In total, these three divisions account for 3,765 job losses. The voluntary enrollment process for these three companies will begin on December 29th, and employees with more than 15 years of service can enroll until December 31st, 2028.

The others come from the so-called GUBs: Telefónica Global Solutions, where 638; Telefónica Digital Innovation, where 182 employees out of a total of 933 will be laid off, and Telefónica SA, where 294 workers would be affected. This totals 585 people, who will be eligible for the workforce reduction plan (ERE) if they have 13 years of service. To all these departures must be added the 175 job losses at Movistar+, out of a total of 860 employees. The total number of job losses, projected at 4,525, will depend on the volume of voluntary applications received, which could shift the final number within the range of 3,765 to 5,040 people, representing the agreed minimum and maximum number of departures across the three main business units. For example, if 3,765 voluntary sign-ups occur, this will be the final number of redundancies, but if more people sign up, the total cannot exceed 5,040. Similarly, if the number of sign-ups is lower, forced redundancies will occur until the minimum of 3,765 employees is reached.

The voluntary sign-up process will begin on December 29 for all subsidiaries except Movistar+, which will sign up on January 7. For those covered by the collective bargaining agreement, the deadline will be January 26, while for the GUBs (General Business Units) it will be extended until January 29. In the case of Movistar+, it will be extended until February 6.