Garamendi on the ERE at Telefónica: "These things happen so that the company can move forward"

MADRID, 28 Nov. (EUROPA PRESS) -

The president of the Spanish Confederation of Business Organizations (CEOE), Antonio Garamendi, has indicated, in connection with the employment regulation files (ERE) that Telefónica will carry out in its three main subsidiaries in Spain and that are expected to affect thousands of employees, that "these things happen so that the company can move forward.

This was indicated by Garamendi this Tuesday at a press conference at the France-Spain Economic Forum and in relation to the link that exists between the exit plan articulated by the operator and the company's new strategic plan, presented on November 8. and in which the company pointed out the need to cut its operating costs.

"I think that at this moment what we have to understand is a little bit about what the approaches are, in this case from the company, because there are moments where these things happen so that the company can move forward, that it has or makes moves in its strategic plan. ", he pointed out.

For his part, the president of the French Business Movement (Medef), Patrick Martin, has lamented that European operators have lost prominence. "It is very impressive to remember that for 30 years the world champions of telephony were Europeans," he said.

Furthermore, he has pointed out that it is necessary for the large European 'telcos' to invest in technology to reach other markets in terms of 5G and 6G with the aim of strengthening the economic fabric of the Old Continent.

In this context, Sabadell analysts consider that the proceedings that Telefónica will carry out in its main subsidiaries - Telefónica de España, Telefónica Soluciones and Telefónica Móviles - are a "positive" measure but with "limited impact."

Although the number of affected workers has not yet been revealed, the financial institution's analysts point out that in a scenario in which the reduction is around 2,500 people (around 12% of the workforce in Spain and 2. 5% of the group) and in which the average cost per employee of the previous exit plan is maintained, the impact on Telefónica's coffers would be around 1,160 million euros, equivalent to 3% of the group's income.

"Positive news, insofar as it is an initiative aimed at improving the company's profitability by reducing personnel expenses (14% of the group's income), although of limited impact, given the number of employees potentially affected" , Sabadell has assessed regarding the aforementioned scenario.

This past Monday, Telefónica informed the unions that it will begin to develop the legal process for the implementation of the ERE, which involves convening the inter-center committees of Telefónica de España, Telefónica Soluciones and Telefónica Móviles, as well as notifying the Ministry of Labor, among other issues.

Union sources consulted by Europa Press indicated that the company has justified the "functional surplus" of workers in accordance with the modification of the company's services, the completion of the deployment of fiber optics to the home (FTTH), the closure of copper and other elements, such as process automation.