Vodafone Spain plans to lay off 1,200 employees after its takeover by Zegona

Vodafone Spain blamed the job cuts on economic, production and organizational difficulties

Vodafone Spain, now owned by Zegona Communications for a month, announced job cuts of up to 1,198 people, saying it would guarantee the company’s competitiveness.

The company went on to say that it had experienced a serious deterioration in its financial and commercial situation as a result of economic, production and organizational difficulties. In fact, it reported that total revenues fell 8%, earnings – before interest, taxes, depreciation and amortization – fell 28% to $625 million, and the company lost about 400,000 contract customers over the past two years.

Vodafone’s decision to cut jobs is in line with a growing trend in the telecoms industry as it continues to be challenged to expand profit margins while demand for telecoms services grows without a corresponding increase in prices. T-Mobile US, Telstra and Erisson are just a few examples.

Last year, Vodafone Group announced plans for mass layoffs as part of a $1.1 billion cost-cutting plan after disappointing profits in the first half of 2022.

The former Spanish unit of Vodafone is the third largest telecommunications operator in Spain after the local units of Orange and Telefonica. Zegona bought it for $5.41 billion.