Telefónica expects to lose 4.318 billion euros in 2025 due to workforce reductions and sales in Latin America

MadridThe sale of almost all of its subsidiaries in Latin America and the workforce reduction plan (ERE) that resulted in the departure of 5,042 employees have weighed heavily on Telefónica's 2025 results. Between January and December of last year, the telecom Telefónica, chaired by Marc Murtra, lost €4.318 billion due to the extraordinary impact of both factors. The Catalan executive will detail the results at a press conference this Tuesday at noon. The workforce reduction plan (ERE) implemented has a cost to the company of €2.049 billion, while the cost of divestments in Latin America amounts to €2.269 billion, as reported by the company this Tuesday morning through the National Securities Market Commission (CNMV). The sales of Latin American subsidiaries that have impacted the 2025 results are those in Argentina, Peru, Ecuador, and Uruguay, while the exit from Colombia and Chile will be accounted for in 2026. The losses announced this Tuesday, 2, show that Telefónica lost €49 million, almost the largest the company has ever recorded. Specifically, these are the largest losses since 2002. Excluding these two extraordinary items, the adjusted net profit of those businesses that remain part of the group stood at €2.122 billion in 2025, 7.9% less than the previous year. Telefónica also reduced part of its debt, specifically €1.4 billion, bringing it down to €26.824 billion. Finally, the revenues of the telecom They grew by 1.5% to 35.12 billion euros.

Growth in Spain

In Spain, one of the markets where the company wants to focus going forward, Telefónica achieved revenues of €13.012 billion, a 1.7% increase. Earnings before interest, taxes, depreciation, and amortization (EBITDA)—which helps to gauge a company's financial health—also grew slightly, by 1.1%, to €4.691 billion. In addition to the State, the 2026-2030 Strategic Plan of the telecom It focuses on the United Kingdom, Germany, and Brazil, as well as the consolidation of the sector in Europe. In fact, in the British market, Telefónica has just completed its first major acquisition to grow in Europe: it has partnered with two other firms to acquire the British company. Netomnia for 2.294 billion euros.

Telefónica has confirmed its new dividend policy, which caused a stir on the stock market, reducing the payout to €0.15 gross per share compared to €0.30 in previous years. The dividend will be paid in June 2027.