In Short:
Zegona Communications, which recently acquired Vodafone Spain, plans to cut around 1,200 jobs, more than a third of its workforce. The UGT union criticized the move, blaming both management and administration for not safeguarding employment in the sale. Zegona, a London-listed company, completed the 5 billion euro acquisition last month. Vodafone Spain is the third-largest telecom operator in Spain.
Vodafone Spain to Cut 1,200 Jobs After Acquisition by Zegona Communications
(FILES) A picture taken on on July 28, 2015 shows the logo of British telecom giant Vodafone atop the Spanish headquarters in Madrid. After its acquisition last month by an investment fund, Vodafone Spain on June 12, 2024 said it was planning to axe almost 1,200 staff, more than a third of its workforce.The former unit of Vodafone in Spain, which has been recently acquired by Zegona Communications, plans to cut up to 1,200 jobs, or just over a third of its total workforce, the UGT union reported on Wednesday.
The plan follows Zegona’s closure of the 5 billion euro ($5.41 billion) acquisition deal last month. Zegona Communications, listed in London, was not immediately available for comment.
“The voracity of a management incapable of devising real solutions to the real problems that have afflicted Vodafone Spain and the inaction of an administration that did not ask for any guarantee for employment in the approval of the sale of Vodafone Spain to Zegona come together,” UGT said.
The former Vodafone unit ranks as the third-largest telecom operator in Spain, following the local units of Orange and Telefonica. Zegona Communications has previously been involved in buying and selling regional operators such as Telecable and Euskaltel in Spain.
