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Telefonica Axes Over 5,000 Jobs in Spain, Spurs Outrage

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Telefonica Axes Over 5,000 Jobs in Spain, Spurs Outrage

Telefonica SA, the top telecom company in Spain, has sent shockwaves through the nation by revealing plans to slash about 5,100 jobs in Spain by 2026.

This move is said to be part of the company’s ruthless drive to hack down expenditures and resize its operations to match the present market landscape, as per a report by Reuters.

The company presently houses around 21,000 workforce in Spain and more than 103,000 globally.

According to the unions, Telefonica based its decision on productivity, organization, and technical grounds, sparking uproar as negotiations over the layoffs kick off.

The company has reportedly been continuously trimming its staff over the past few years due to automation and the shift from copper to fiber optics, considerably reducing the need for manpower.

Telefonica declared a robust third-quarter revenue growth of 11.2% Y/Y to €10.34 billion in September. The company’s free cash flow has also seen a mammoth growth, doubling to €1.13 billion.

Price Action: On the latest check Tuesday, TEF shares are trading higher by 0.23% at $4.33 premarket.

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