Vodafone Spain, recently acquired by Zegona Communications, plans to cut up to 1,200 jobs to ensure future viability, citing significant financial challenges.
Madrid, Spain (Bollywood Fever): A former Vodafone unit in Spain, recently acquired by Zegona Communications, plans to cut up to 1,200 jobs, which is just over a third of its total workforce, according to statements from both the company and unions on Wednesday.
This decision follows the completion of Zegona’s 5 billion euro ($5.41 billion) acquisition last month. Despite retaining the Vodafone brand name through a 10-year agreement with Zegona, Vodafone Spain stated that the layoffs are essential to ensure the company’s future viability and competitiveness.
Citing significant financial and commercial challenges, Vodafone Spain attributed the planned job cuts to economic, production, and organizational issues. The company reported an 8% decline in total revenues and a loss of approximately 400,000 contract customers over the past two years.
“The voracity of a management incapable of devising real solutions to the real problems that have afflicted Vodafone Spain, and the inaction of an administration that did not ask for any guarantee for employment in the approval of the sale of Vodafone Spain to Zegona, come together,” the UGT union commented.
Vodafone Spain is the third-largest telecom operator in Spain, following the local units of Orange and Telefonica. Zegona, which has a history of acquiring and selling regional operators such as Telecable and Euskaltel in Spain, now faces the challenge of restructuring Vodafone Spain to restore its financial health.
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