The 4,500 positions will be lost through early retirements over the next two years. However, this figure could increase to 10,000 positions according to some union officials, and some Spanish newspapers have published unattributed reports that the figure could even rise to 14,000 jobs during the next three years.
Telefonica de Espana SA is a domestic fixed-line operator and the largest unit in the Telefonica group. It had a work force of 40,659 as of December 2002. The whole Telefonica group, including its internet and mobile unit at home and aboard, is thought to employ a total of 150,000 people.
The cuts will be the first job losses at Telefonica since 1999. The compnay has been struggling to increase its competitiveness, shore up its market share, and deal with tight margins in its fixed-line operations.
The decision to trim its workforce mirrors that of other European telcos, which have already announced staff cuts. France Telecom SA has pledged to cut 13,000 positions this year, and Deutsche Telekom AG is cutting 55,000 jobs through to 2005.
Source: Computerwire
