Spanish telecom giant cuts 5,500 jobs to save $700 million

Business Dec 22, 2025

Telefonica, one of Spain's biggest telecom companies, is letting go of 5,500 employees in a major cost-cutting move.
The plan—agreed with unions—will start early next year and aims to save the company over $700 million a year.
It's part of Telefonica's effort to bounce back after forecasting less cash flow for 2025 and cutting its dividend in half.

Other details

Telefonica's shares have dropped 14% this year, hitting their lowest since 2022.
With about 25,000 staff in Spain and 80,000 worldwide, this is their largest layoff since last year when they cut over 3,400 jobs at home.
The company projects a positive impact on cash generation from 2026 as a result of these changes.