Telefónica signs redundancy deal at cost of €2.5bn
December 22, 2025
From David Del Valle in Madrid
Telefónica’s management has signed a redundancy agreement with the main trade unions — UGT, CC OO and Fetico-Sumados — covering seven of the Spanish group’s subsidiaries. The deal, signed today [December 22nd], will lead to a minimum of 4,525 job losses, although the company expects the final figure to rise to around 5,500.
The minimum number of departures represents a reduction of 25.6 per cent compared with the 6,088 redundancies initially proposed at the start of negotiations. It also accounts for 26.2 per cent of the total workforce across the seven affected subsidiaries, which together employ 17,248 people.
Telefónica estimates that the restructuring will have a total cost of €2.5 billion before tax – which will be provisioned in the company’s accounts for the 2025 financial year. Of this amount, €2.3 billion relates to Telefónica España and Movistar Plus+, while the remaining €200 million corresponds to the group’s Corporate Units.
Following the reorganisation, the company expects to achieve average annual savings of around €600 million from 2028 onwards. Telefónica also anticipates a positive impact on cash generation from 2026, according to a regulatory filing submitted to Spain’s securities market regulator, the CNMV.