Europe’s second-largest phone company Telefónica (TEF) reached an agreement with Spanish labor unions to cut up to 6,500 jobs over the next three years. In its statement, the telecom company explain that the measure aims to ensure the viability and competitiveness in coming years. The operator announced earlier this year it needed to cut jobs to lower costs. Latin America units nor any other country outside of Spain will be affected by the layoffs, Telefônica Brazil reported.

The layoffs are expected to affect nearly 20% of the company’s 35,000 Spanish employees. Telefónica said that it will assume all costs associated with the layoffs, which include 45 days of pay for every year of working plus voluntary separation grants.
Telefónica has also committed to creating up to 680 new jobs in the coming years.

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