Vodafone Spain plans 1,200 job cuts after acquisition by Zegona
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 12 2024
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Source: reuters
- Job Cuts at Former Vodafone Unit: Zegona Communications plans to cut up to 1,200 jobs, about a third of its workforce, following the acquisition of a former Vodafone unit in Spain.
- Reasons for Layoffs: The decision for job cuts is driven by financial, commercial, and organizational challenges faced by Vodafone Spain, including an 8% decline in total revenues and loss of contract customers.
- Viability Concerns: Vodafone Spain believes that the layoffs are necessary to ensure its future viability and competitiveness in the market.
- Union Criticism: The UGT union criticized the management's approach and lack of guarantees for employment during the sale of Vodafone Spain to Zegona.
- Market Position: The former Vodafone unit is the third-largest telecom operator in Spain, trailing behind Orange and Telefonica.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
