Telefónica redundancies to cost €2.7B

The 6,500 staff being made redundant by Telefónica will cost the company €2.7 billion, the operator said. The company said that the layoffs, affecting nearly 20 per cent of its 35,000 Spanish employees, will help to increase profitability within its Spanish business unit. The redundancy costs, which average €415,000 per employee, will not, according to Telefónica, affect its dividend targets. The company came under intense pressure from the Spanish government when it first announced it would layoff 8,500 employees, now lowered to this latest 6,500 level. Spain has an unemployment rate that is the highest in the Euro zone at 21 per cent. Article (sub. req.)