MADRID Reuters Oranges Spanish business will lay off up to 485 employees in the coming weeks, the company said on Friday, citing years of shrinking income amid Spains hypercompetitive and increasingly lowcost telecommunications sector.
Frances biggest telecoms firm had already signalled that ruthless competition in Spain its secondlargest market was a longterm trend in the region after posting worsethanexpected results in the first quarter.
Like its European rivals, Orange has been facing growth issues separate from the pandemics impact as the sector, which has spent extensively on infrastructure such as fibreoptic cabling, scrambles to fund its upgrade to nextgeneration 5G networks.
The telecommunications sector has spent years enduring revenue loss as a consequence of the hypercompetitivity of the market and the multiplicity of lowcost actors, a spokeswoman for Orange Spain said in a statement.
This context is a huge challenge for the company, which has shouldered intensive investments in the past 20 years and needs to keep doing so amid the technological transition.
Adapting operations by reducing the workforce will be essential to ensuring Oranges competitiveness in the face of structural changes, the statement added, noting that negotiations with labour unions would begin in the next few days.
Reporting by ClaraLaeila Laudette; Editing by Nathan Allen and Jan Harvey