Telefónica ends lay-off scheme

7th January 2008, Comments 0 comments

Telefónica ends lay-off scheme as 14,000 workers exit firm.

7 January 2008

MADRID - Telefónica's fixed line and internet-access domestic unit Telefónica de España completed its voluntary lay-off program at the end of last year, with some 14,000 employees accepting severance packages to leave the company.

The total costs of the program available to workers over 52 years old amounted to EUR 3.75 billion, the largest total severance package in Spanish corporate history.

Telefónica de España now has a workforce of about 25,000, compared with 40,500 at the end of 2002.

In a separate development Dutch telecoms operator KPN on Friday rejected rumours its was holding talks with Telefónica aimed at a merger of the two companies. Telefónica said it never comments on market rumours.

Telefónica and KPN aborted merger plans in 2000. KPN has been a persistent source of merger and acquisition speculation after the Dutch government sold its remaining stake in the company in 2006.

KPN's shares closed up 2.75 percent, while Telefónica closed down 0.60 percent.

[Copyright El Pais / Rafael Méndez / Adrián Soto 2008]

Subject: Spanish news

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