MasOrange Initiates Voluntary Layoff Plan Amid Merging Workforce Challenges
MasOrange, the newly formed telecommunications giant in Spain, resulting from the merger of Orange and MásMóvil, has announced a voluntary Employment Regulation File (ERE) that could see up to 795 workers laid off, representing nearly 10% of its workforce of around 8,400 employees. This decision was communicated to staff on Tuesday through an internal message intercepted by Europa Press.
The merger, finalized on March 26, 2023, involved Orange acquiring MásMóvil in a transaction valued at approximately 18.6 billion euros. Post-merger, the organization now consists of about 6,600 employees from Orange and 1,800 from MásMóvil. The company aims to finalize negotiations regarding the ERE with unions within a maximum of 15 days, signaling intentions to reach an agreement by mid-October. Following this, employees wishing to partake in the voluntary departure plan can do so.
MasOrange’s CEO, Meinrad Spenger, addressed employees in a virtual meeting to explain the current situation. The management emphasized their commitment to work transparently and equitably with all stakeholders to achieve mutually agreeable results. The need for the ERE arises from organizational duplications detected during the integration of the two companies, necessitating a restructuring approach that MasOrange deems essential for efficient operation.
In an earlier engagement with the press and employees, Spenger had reassured that there were no plans for mass layoffs, highlighting the firm's preference for voluntary departures. Notably, the merger required governmental sanction, tied to an ambitious industrial plan promising up to 4 billion euros in commitments aimed at job maintenance. Notably, the company underscored that voluntary participation would be prioritized in the ERE process which affects the primary affiliates including Orange Espagne, Xfera Móviles, and others; however, proprietary stores and call centers will be excluded.
MasOrange has also promised an attractive relocation scheme for employees choosing to exit, with the corporate strategy aiming to alleviate uncertainties as the company embarks on a new operational journey. However, the labor union UGT expressed strong opposition to the ERE, labeling it as a step backward that threatens stable, well-paying jobs crucial to Spain's economic health. The union vowed to advocate for voluntary terms and benefits akin to those outlined in a 2021 agreement related to layoffs at Orange Spain.
The ERE at MasOrange is indicative of a larger crisis plaguing the telecommunications sector in Spain, where recent months have seen resultant layoffs across major companies such as Telefónica and Vodafone. The latter company saw 898 employees depart in July, marking its fifth layoff since 2013, which cumulatively accounted for around 4,100 job losses. Similarly, Telefónica's restructuring efforts concluded with a voluntary exit of 3,420 employees earlier in the year, while Avatel Telecom's program resulted in 674 layoffs.
With nearly 5,000 jobs eliminated across the sector so far this year, the announcement from MasOrange underscores the harsh realities of corporate restructuring in telecommunications - a trend that could pose further challenges for job security in the industry. Moving forward, the company is hopeful for fruitful negotiations with the unions to mitigate impacts on employees and find a way to navigate these turbulent times.
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