Telefónica to Cut 6,000 Jobs as Latin America Exit Deepens

• Oct 06, 2025

Spanish telecommunications giant Telefónica SA is preparing to launch a large-scale redundancy plan that could see more than 6,000 workers laid off by the end of the year. The move marks the company’s biggest workforce reduction in years and highlights its growing retreat from Latin American markets outside Brazil, according to Spanish business outlet Expansión.

The Madrid-based operator intends to extend job cuts beyond its main Spanish units to include subsidiaries such as Telefónica Tech, Movistar+, and its corporate centre. Sources familiar with the plan said the total number of affected positions could reach 7,000 from a workforce of around 25,000. However, negotiations with trade unions are expected to lower the final figure.

In response to reports, a Telefónica spokesperson said the company “is working on numerous analyses across all areas,” but added that “a redundancy plan is not on the table at this time.”

The layoffs are part of Chief Executive Marc Murtra’s strategy to refocus Telefónica’s operations around Europe and Brazil while selling off assets in Spanish-speaking Latin America. The company has already agreed to divest its Argentine and Uruguayan operations and is exploring sales in Chile, Mexico, and Ecuador. Analysts at Kepler estimate that these disposals could generate up to €3.6 billion.

Telefónica’s withdrawal from the region marks a major shift in its international strategy. Once a key pillar of its global expansion, Latin America has become less profitable amid rising competition and economic instability. The company’s first-half results showed a €1.35 billion loss linked to discontinued Latin American operations.

Murtra plans to consolidate these financial setbacks within the 2025 fiscal year, aiming for cleaner balance sheets and reduced labour costs by 2026. The expected provision for redundancies is projected to exceed the €1.3 billion recorded in 2023, when Telefónica cut 3,421 jobs, saving about €285 million annually.

Speaking to Reuters in September, Murtra said Telefónica’s goal is to strengthen its presence in Europe and Brazil through acquisitions and partnerships while maintaining an investment-grade credit rating. Potential targets include Vodafone’s Spanish division, a merger with Germany’s 1&1, or select assets in Brazil.

Telefónica plans to brief union representatives on the redundancy plan shortly after presenting its strategic roadmap on November 4. Spanish labour laws require a 15-day window to form negotiating committees and 30 days to reach agreements with employee representatives once formal talks begin.