Ericsson, Barcelona. Credit: davide bonaldo, Shutterstock
Swedish telecoms giant Ericsson will slash over 300 jobs in Spain (about 13 per cent of its workforce) this July as part of a sweeping European reorganisation.
The move comes just a year after the company’s Madrid, Málaga and Barcelona operations avoided global layoffs at its Stockholm HQ.
The cuts will affect roles across Ericsson Spain’s 2,260-strong team, which includes over 800 R&D positions distributed across:
- Madrid (600 staff)
- Málaga (200 staff)
- Barcelona (30 staff)
These changes follow Ericsson’s decision to reduce its global business units from seven to just four, prompting internal duplication and role elimination. The company admitted that the restructuring “will create operational efficiencies, which may mean duplicating some functions or making work easier, which will mean eliminating some functions” (Cited by elEconomista.es.)
Last year, Ericsson cut 8,500 jobs globally due to a slump in the mobile network equipment market, 1200 of which were in Stockholm, yet Spain was largely untouched until now.
The company had previously described its Spanish subsidiary as “strategic,” thanks to its close proximity to decision-making at telecom giants like Telefónica, Vodafone, and Orange. However, those relationships have shifted due to Orange’s merger with MásMóvil and Vodafone’s acquisition by Zegona.
In June, Ericsson merged its European, Middle Eastern and African operations into a single EMEA region, dissolving its previous MELA (Europe and Latin America) structure. France’s Christian Leon now oversees the European operations, with Ericsson Spain CEO Diego Martínez reporting directly to him.
Despite the looming layoffs, Ericsson Spain’s 2024 financial results show growth:
- €25.8 million in profit (+11 per cent vs. 2023)
- €538.1 million in sales (+8.2 per cent)
Personnel costs hit nearly €250 million, 16.8 per cent higher than the year before. Meanwhile:
- Director salaries dropped by 17.5 per cent to €783,000
- Senior management received €2.6 million, the same as 2023, split between 14 executives
Last year, the company only laid off 47 employees in Spain, highlighting the stark contrast with this year’s 300+ projected cuts.
Ericsson’s decision could mark the beginning of broader layoffs in Europe’s struggling telecom industry.
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