Telefonica may cut 7'000 Spanish jobs

 

Spain's Telefonica could reduce it's number of employees in Spain by an estimated 20% over the course of the next 3 years as they target growth in Latin America to make up for declining sales in the Spanish market.

The former telcomms giant has suffered financial losses since losing it's monopoly in Spain.

Telefonica currently employs about 35,000 people in Spain, faces a difficult situation due to the pressures of competetion, the company said in a presentation on its website today. Madrid-based Telefonica, which is cutting 6% of all mangerial positions, said it will link pay and benefits in future to the productivity of it's employees.

The company is turning to it's operations in Latin America's, where it is hoped the growth seen here recently will attract investors who have lost confidence by the Spanish government's austerity measures and the highest unemployment rate in the euro region.

Yesterday Telefonica published their forecast, expecting revenues of at least 1% growth annually through 2013 and budgeted up to 27 billion euros in investment to expand it's Latin American operations.