Telefónica Announces Exit Plans and Collective Agreement Signings

Telefónica S.A. has announced significant developments regarding its workforce and operational structure as part of its Transform & Grow Plan 2026-2030. The company has reached agreements with trade unions to implement exit plans for approximately 5,500 employees across Telefónica España, Movistar Plus+, and Corporate Units. These plans, with an estimated pre-tax cost of 2,500 million euros, are expected to result in annual savings of around 600 million euros from 2028 onwards. Employee exits are slated to begin in the first quarter of 2026, with a positive impact on cash generation anticipated from 2026. Additionally, Telefónica España and Corporate Units have agreed to extend their respective collective bargaining agreements, while Movistar Plus+ will sign a new one, both valid until December 31, 2030. These initiatives aim to foster a more digital, flexible, and competitive organization by focusing on talent retention, development, and modern work practices.