Business & Markets
Telefonica German unit plans up to 1,100 job cuts
Telefonica's German subsidiary said it plans to cut up to 1,100 jobs and close 60 stores because of a crowded market and the rise of artificial intelligence.
The company said in a statement that the cuts were needed because the German market was becoming more saturated. It also cited technological progress, including artificial intelligence.
Telefonica said it employed about 7,600 people in Germany in 2025 and hoped to make the cuts this year, mainly through voluntary departures. The 60 stores marked for closure make up about eight percent of the network of Telefonica and its 02 subsidiary. The company said it would place more emphasis on online sales.
Santiago Argelich Hesse, head of the German company, said Telefonica wanted to further consolidate Telefonica Deutschland's position as a provider of digital infrastructure and services for consumers and businesses.
The company said it could spend up to 420 million euros, or $480 million, on the restructuring.
Telefonica's debt-laden Spanish parent company announced in November that it would seek 5,000 job cuts in Spain and sell some operations in Latin America. Telefonica makes about a quarter of its revenues in Germany.
Update
Telefonica's German subsidiary said the planned cuts would be mainly through voluntary departures.
The company said it would put more emphasis on online sales.
The 60 planned store closures amount to about eight percent of the Telefonica and 02 store network.
The company said restructuring could cost up to 420 million euros, or $480 million.
Telefonica's Spanish parent company announced in November that it would seek 5,000 job cuts in Spain and sell some Latin American operations.
Telefonica makes about a quarter of its revenues in Germany.
Source note: AFP news report published on 22 July 2026 at 17:48:33 UTC.
Uncertainty notes
The final number of job cuts may be lower than 1,100 because the plan is described as up to that number.
The restructuring cost may be lower than 420 million euros because the company described that as an upper limit.
Source
AFP news report published on .