Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Telecommunications multinational company Telefónica announced a voluntary redundancy plan for its workforce in Spain. The plan involves employees with 15 years of seniority in the company and born in 1966 or before, meaning employees that are turning 56 years old in 2019: both requirements appeal to an estimated 5,000 employees. According to previous experiences of other plans, the company estimates that 3,000 employees – corresponding to 11% of the total workforce in Spain – are expected to take part in the plan, with a projected overall cost of €1.6 billion. The company forecasts an average annual saving of around €220 million starting from 2021.
The company and the unions have started to negotiate the specific conditions for the retirement plan. In the 2016 voluntary redundancy plan, the company agreed to pay 68% of the gross compensation until retirement for employees who were 53 years old and has 15 years of seniority in the company at the time of application. The plan involved 6,300 employees.
The restructuring event comes along with an extended plan of training on digital skills and competences. The plan includes upskilling and reskilling initiatives, which allows the company to take advantage of new opportunities with additional margins for efficiency in the areas of digitalisation, robotisation and automation.
Update 29/11/2019
After negotiations, 2,636 employees over 53 years of age and seniority of more than 15 years (same requirements of 2016 laborforce adjustment) have adhered to the Telefónica new early retirement plan (representsing 10.4% of the current workforce of the firm).
Eurofound (2019), Telefónica, Internal restructuring in Spain, factsheet number 98436, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/98436.