Vodafone announces an ERE in Spain for 1,200 employees due to the "negative evolution of the business"

Vodafone announces an ERE in Spain for 1,200 employees due to the "negative evolution of the business"



Vodafone does not go through its best moments in Spain. The company announced on Thursday the start of a "collective dismissal procedure" that includes 1,200 workers from its Spanish subsidiary. He attributes this situation to the "negative evolution of the business". "This decision is justified for economic, productive and organizational reasons," he said in a statement.

The British company says that at the end of this month will begin a one-month period to negotiate with the unions the conditions for this new cut of staff, which happens to the one undertaken in 2015 after the merger with ONO and that meant the dismissal of more than 1,050 people. The process that opens now could affect about a quarter of its workforce, 23.5%.

Already at the end of last year began to speculate with the arrival of this new ERE. The company warned in the autumn that the business in Spain was not going through the best time, given the pressure of its competitors, the price war and for having decided to stop broadcasting football.

To this is added now, according to the company's statement, the growth of its low-cost customers. "Nearly 50% of discharges are linked to 'low cost' offers," says the company, which justifies in this situation "the obligation to have a cost structure prepared to compete successfully in all segments. "The company argues that this situation has already led to the fall of ebitda -result before applying interest, depreciation, amortization and taxes- and income.

The British teleco defends that with this ERE it intends to "reverse the negative evolution of the business, reinforce the sustainability and improve the investment capacity". In addition, it justifies that more agile customer service structures are needed

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