• A voluntary-leaver programme will drive most of the cuts, with the full reduction expected by end-2026
• The operator expects its approved and planned restructuring measures to generate annual savings of about €185 million from 2028
The fact
Telefónica Germany plans to remove up to 1,100 full-time positions by the end of 2026. A substantial share of the reduction is expected to take place through a voluntary-leaver programme agreed with employee representatives. The operator will also close around 60 of its approximately 800 company-owned and partner shops as more sales move to digital channels.
The company is simplifying its organisation, consolidating activities and increasing the use of AI in selected processes. It also plans to combine resources across sales channels and customer-service operations, while further measures are developed for implementation through 2028. Telefónica expects to book a €265 million restructuring provision for approved measures in the second quarter and could recognise up to another €155 million for measures still being planned. It expects the programme to generate annual savings of around €185 million from 2028.
The assessment
The restructuring will move more of Telefónica Germany's sales and customer-service activity online, while in-person services are handled through fewer stores and consolidated teams. The company has not specified which tasks will be automated or how much of the expected saving will come from AI.
As the programme is implemented through 2028, Telefónica will need to divide sales and support activity across digital channels, remaining stores and consolidated teams. The €185 million annual saving target depends on completing both approved and planned measures. Telefónica has not yet disclosed the operating or customer metrics it will use to assess the new structure.
For BTW readers, the programme reduces the number of staff and shops supporting sales and customer service while placing more responsibility on digital channels and consolidated teams. The savings target is clear, but the operating performance required from the smaller structure has not been defined.
What to watch
Watch how many positions leave through the voluntary programme, which shops close and what further sales and customer-service measures are approved. Reported savings, sales performance and customer-service measures from 2028 will provide the clearest indication of how the new structure is operating.