Telefónica is finalising a staff reduction plan with the unions in its Spanish subsidiary, which contemplates the elimination of up to 5,000 positions in the coming years and which will also reach the corporate area and its subsidiaries, with incentivised dismissals that may affect 500 positions, in this case without union coverage. Among the latter affected, it is expected to include dozens of directors, and managers, with exit conditions unrelated to the Individual Suspension Plan for the Employment Relationship (PSI).
The telecom job cuts are expected to be extended to the corporate area, but in this case without the advantages that Telefónica Spain workers traditionally enjoyed across the board. The fact that Telefónica SA does not have union representation conditions the negotiation of the corporation’s employees, so each incentivized leave will be carried out on a personalised basis.
In the case of the Individual Suspension Plan for the Employment Relationship (PSI), Telefónica Spain will propose this week to the unions the application of this extraordinary measure until 2026, in several windows. In this way, everything indicates that the aforementioned program will be part of the Strategic Plan that the firm will present on November 8, at the same time as its quarterly results. However, the president of the company, José María Álvarez-Pallete, will share the plan this Wednesday with the company’s board, detailing the main strategic lines that will guide the steps of the multinational in the coming years.
The technological renewal undertaken by Telefónica Spain, with the shutdown of all copper plants before April 2024, conditions the telecom company to undertake a labour reconversion in favour of other technologies, such as fibre optics and 5G. At the same time, the operator also intends to simplify its structures, in line with the guidelines of a strategic plan that will presumably promote the search for savings and synergies.
The workers’ representatives hope to replicate the conditions of previous PSI, with the maintenance of Social Security payments, contributions to the pension plan and collective health insurance until retirement age, all with compensation equivalent to 65% of remuneration up to 65 years of age. This last plan was designed for a maximum of around 4,500 employees and finally around 3,000 workers took advantage of it, which resulted in a cost of around 1.4 billion euro.
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