Vodafone eyes 900 job cuts in Spain
British mobile phone giant Vodafone said Tuesday that it will cut up to 900 jobs in Spain, where its revenues are plunging amid tough economic conditions.
Vodafone said it was negotiating with unions about a process that "could affect a maximum of 900 people" from its staff of 4,300 employees as the company seeks to implement a "transformation plan to gain competitiveness and efficiency."
A statement said the cuts were the result of the "new reality of the telecommunications sector in Spain and the current economic climate characterised by a decline in traditional voice and messaging business, high competition and regulatory pressure."
Vodafone noted that its revenues in Spain had fallen by more than 30 percent over the past four years.
The country is deep in recession with an unemployment rate at more than 25 percent, amid public spending cutbacks and sales tax increases that have choked consumer spending.
In its latest financial results Vodafone said that in the first half of its current fiscal year, to the end of September, it fell into a net loss equivalent to around 2.4 billion euros ($3.2 billion) owing to massive write-downs of assets linked to Spain and Italy.
© 2013 AFP