Vodafone cuts 620 jobs in Spain
Vodafone is to cut 620 jobs in Spain after reaching an agreement with local labour unions.
The move follows a 16.4% decline in Vodafone’s Spanish revenue in the fourth quarter of 2012 to £887 million, the operator’s worst performing country of the quarter.
The numbers of cuts is less than the 1,000 expected but in line with figures given by unions last month, according to Reuters.
Vodafone said some services may be outsourced affecting up to another 130 jobs and working conditions for 150 workers are also set to change. Another 400 staff will no longer receive tax-free luncheon vouchers.
The British telco said the cuts were necessary to support the viability of its business and to free up funds for infrastructure and network investment.
Difficult economic conditions in Spain have reduced customer spending and led many to seek cheaper alternative offerings from MVNOs.
Both Vodafone and market leader Telefónica have experienced significant declines in their subscriber base.
From September 2011 to September 2012 Vodafone’s wireless customer base dropped from approximately 17.52 million to 16.34 million, according to TeleGeography.