Zegona Communications recently purchased a former Vodafone unit in Spain and announced plans to eliminate up to 1,200 jobs, representing over a third of its workforce.
The announcement was made by both the unions and the company this Wednesday. Following its 5 billion euro acquisition of Vodafone Spain last month, Zegona has decided on these layoffs. Despite retaining the Vodafone brand after a 10-year agreement, the company stated that the job cuts are essential for its sustainability and competitive edge.
The layoffs are attributed to economic, production, and organizational factors, reflecting the company’s significant financial and commercial decline. Vodafone Spain reported an 8% drop in total revenues and a loss of about 400,000 contract customers over the past two years.
The UGT union criticized management’s failure to effectively address Vodafone Spain’s real issues and noted the lack of employment protections in the sale agreement to Zegona.
Zegona, known for its prior acquisitions and sales of regional operators like Telecable and Euskaltel in Spain, ranks as the third-largest telecom operator in Spain, behind the local units of Orange and Telefonica.
