Updated on Wednesday, September 15, 2021 – 12:59
“For some years now, the competitive intensity in prices and the drift towards low-value rates in Spain has caused a strong drop in revenues,” they argue from the company.
Vodafone headquarters, next to the A-2, in Madrid.EM
Vodafone is preparing an ERE that will affect 515 employees and which is focused on the operator’s commercial areas in Spain.
The company has informed the workers’ representatives of this new collective dismissal procedure and has invited them to start the consultation period at the end of this month, which will last one month.
“The decision to initiate this procedure is justified by economic, productive and organizational reasons, and is encouraged by the market trend in the telecommunications sector and by the need to improve its operational performance by accelerating its digital transformation strategy, “the company said in a note.
Vodafone, “sensitive” to the impact of this measure, makes this diagnosis regarding the ERE: “For some years now, the competitive intensity in prices and the drift towards low value rates in Spain has caused a sharp drop in revenue and a significant deterioration in margins“.
Colman Deegan has been the CEO of Vodafone Spain since last November 1, replacing Antnio Coimbra, and not a year has passed since he has put an employment regulation file on the table. EREs in Vodafone Spain are relatively common: since 2013, up to four have been triggered in the company of British origin, the last in 2019 and with 889 associated departures.
The last ERE of Vodafone Spain, of 2019, was also linked to “economic, productive and organizational reasons” with a load of guilt attributed to the low cost environment. Although it is striking, the case of Vodafone is not entirely exceptional: the entire telecommunications sector has been thinning its workforce in Spain in recent times and Orange itself announced in May an ERE “for organizational reasons” for a maximum of 485 workers.
The organizational restructuring seeks to “turn Vodafone into a more digital, agile and better prepared company to compete”, they say: “This rebalancing in the organization proposes an adjustment in the most operational areas, commercial channels and in products and services to adapt to the environment. market “.
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