Soon after having completed the acquistion of Vodafone Spain for €5 billion, Zegona has launched a redundancy job plan that will affect 1,198 workers – equating to over 36 per cent of Vodafone’s staff.
José Miguel García, former CEO of Euskaltel and Jazztel, will pilot the plan that has to be negotiated and agreed with trade unions within one month.
Financial, productive and organisational reasons are behind the redundancy measure, according to the company, in order to make the group more viable and competitive in the market. Zegona points out that Vodafone Spain has seen its revenues fall by 8 per cent in the last two years, losing around 400,000 customers.
This is the fifth redundancy plan faced by Vodafone since 2013. The news has come at a time when Telefónica has also fired 3,400 workers in the year with many questioning the viability of the companies in a very tough and competitive telco market.