Vodafone Spain blamed the job cuts on economic, production and organizational hardships
Vodafone Spain, now owned by Zegona Communications as of a month ago, has announced job cuts totaling up to 1,198, claiming doing so will guarantee the company’s competitiveness.
The company said further in a statement that it has suffered strong financial and commercial deterioration as the result of economic, production and organizational hardships. In fact, it said that total revenues were down by 8%, earnings — before interest, tax, depreciation and amortization — were down 28%, to $625 million, and it has lost approximately 400,000 contract customers in the last two years.
Vodafone’s decision to reduce its workforce follows a growing trend in the telecoms industry, as it remains challenging for them to grow profit margins while demand for telecom services increase without a corresponding rise in prices. T-Mobile US, Telstra and Erisson are just a few examples.
Last year, Vodafone group announced plans for massive layoffs as part of a $1.1 billion dollar cost-cutting effort, following disappointing profits in the first half of 2022.
The former Spanish Vodafone unit is the third-largest telecom operator in Spain after the local units of Orange and Telefonica. Zegona purchased it in a deal valued at $5.41 billion.
