Banc Sabadell | Telefónica (TEF) has communicated this week the agreement for the execution of the planned redundancy proceedings for its subsidiaries in Spain, which will finally affect 3,421 employees (~16% of the employees in Spain, ~3% of the Group), in line with what was already known. In the statement, Telefónica indicates that the present value of the costs associated with the plan has resulted in a provision of close…

The agreement that has been reached between Telefónica and the unions was made possible by reducing the number of people affected by the ERE (redundancy proceedings) and improving the conditions. The ERE will finally be aimed at 3,421 people, 2/3 of the initial total, 2,958 workers from Telefónica España, 397 from Telefónica móviles and 66 from Telefónica Soluciones. The workers will receive between 52% and 68% of their salary until…

Morgan Stanley| On Tuesday, the Spanish government decided to order state-owned SEPI to buy up to 10% of Telefónica (TEF), ending a 26-year period of no government control of Telefónica since its privatisation in 1997. However, Nawar Cristin points out that, after this purchase, Telefónica joins a long list of state-controlled companies and that 10% is at the lower end of the range. Moreover, the announcement has not come as…