Vodafone Spain looking to staff cuts to bolster operations?

15 Jan 2013

The Spanish mobile unit of UK-based Vodafone Group may look to cut its workforce by up to 25% as it seeks ways to shore up its operations amid an ongoing price-war with other operators and a shrinking customer base, both of which have been prompted by the country’s economic difficulties. According to Reuters, Vodafone Spain is expected to enter negotiations with labour unions today, and while the cellco has not directly revealed the number of employees it may lay off, an unnamed union source was cited as suggesting that it could be as many as a quarter of the current staff. ‘We managed to avoid lay-offs last year by agreeing to work suspensions and salary cuts, but now everything is pointing to them wanting to fire close to 1,000 workers,’ the source noted.

As previously reported by CommsUpdate in November 2012, on the back of a 9.8% year-on-year slump in organic service revenue at its Southern European units for the six-month period ended 30 September 2012, Vodafone Group confirmed it had incurred a total impairment charge of GBP5.9 billion (USD9.34 billion) related to ‘the carrying value of goodwill of its operations in Spain and Italy as a result of challenging market conditions and adverse movements in discount rates’.

Spain, Vodafone Spain