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Spanish telco agrees voluntary job cuts plan with unions.
Telefonica is introducing a voluntary job cuts plan that will initially cost it €2.9 billion, it announced late last week.
In a statement to the CNMV, the Spanish Securities Commission, the telco said it will record the cost as a one-off charge in its 2015 financial results, which are due for publication towards the end of the month.
Telefonica said the scheme will enable it to generate annual cost-savings of €370 million from its second year, and its impact on cash-generation will be positive from the first year.
It has agreed the plan with the main trade unions. The scheme will be open during the 2016-2017 period.
The operator did not provide further information in its statement. However, according to Reuters, employees aged 53 and above will be eligible for the scheme, of which Telefonica has around 7,000.
