Telefónica sought to lay off 4,525 employees with its ERE. Now it has a problem called 5,124 volunteers

Telefónica's recent Expediente de Regulación de Empleo (ERE) in Spain has seen an unexpected surge in employee interest, with 5,124 workers volunteering for redundancy, exceeding the planned 4,525 positions. This significant oversubscription presents a unique challenge for the telecommunications giant and its employee representatives. The ERE, impacting seven Telefónica subsidiaries including Telefónica de España, Telefónica Móviles, and Telefónica Global Solutions, was intended to streamline operations. The ERE was finalized with trade unions, setting a cap of 4,525 redundancies across the group, a figure which represented a 25.6% reduction from the company's initial proposal. This target also signified a 26.2% decrease in the workforce of the affected seven companies, which collectively employed 17,248 individuals. The majority of these planned exits were concentrated within Telefónica España, Telefónica Móviles, and Telefónica Soluciones. The surplus of 352 volunteers who will not be accommodated in the ERE due to exceeding the agreed-upon limit is a point of concern for union representatives. This situation highlights a strong desire among a segment of Telefónica's workforce to leave the company, possibly driven by the attractive terms offered within the ERE package, which has been described as potentially lucrative for long-term employees. The company and unions will now need to navigate the implications of this high voluntary participation.