Vodafone Spain could slash around 1,000 jobs as it attempts to restructure the company in the face of mounting competition from Spanish rivals, according to media reports.
The company is reported to have entered into negotiations with union officials about reducing its workforce of 4,300 people by around 25 per cent, but Vodafone has not confirmed actual numbers or when these job cuts will occur.
"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," a union source told Reuters.
Last November, UK-based Vodafone announced a write-down of £5.9 billion from the value of its businesses in Spain, Italy and Greece, forcing the company to report a first half pre-tax loss of £492 million, according to the Financial Times.
Since this move, the price war among Spanish mobile operators has intensified as cash-strapped consumers switch in record numbers to cheaper MVNOs.
Vodafone has already cut employees' salaries and working days at its Spanish subsidiary to reduce costs as service revenues have continued to fall.
Local media reports mention that Vodafone is looking at various initiatives to transform its Spanish operations. The company could focus on actions including improving the customer experience, more competitive offers and better connectivity.
Separately, Deutsche Bank has cut its Vodafone rating to hold from buy, with a target price of 175p from 225p, according to Stock MarketWire.
For more:
- see this Reuters article
- see this Financial Times article (reg. req.)
- see this El Economista article (translated via Google Translate)
- see this Stock MarketWire article
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