The Spanish telecommunications operator Telefónica announced this Tuesday, 24, a loss of 4.3 billion euros in 2025, due to the sale of the unit for Latin America and layoffs in Spain.
According to a statement sent to the Madrid stock market regulator, Telefónica admitted that losses will soar, compared to the 49 million euro loss recorded in 2024.
The sale of subsidiaries in Argentina, Peru, Uruguay and Ecuador resulted in losses of approximately 2.27 billion euros.
Latin America was once one of Telefónica’s preferred markets, but the operator is currently facing strong competition and loss of market share.
At the end of December, the company announced an agreement with the unions representing the company’s workers, which will lead to “voluntary departures” of around 5,500 people, something that will cost Telefónica 2.05 billion euros in 2025.
This “employment regulation process” merited the “deep disagreement” of the Spanish Government. The Spanish State still holds a 10% share in the operator, which was privatized in 1997.
The company highlighted that, if it were not for the extraordinary expenses, it would have presented profits of 2.12 billion euros, reversing the loss of 19 million euros recorded in the previous year.
Revenues fell by 1.5% in 2025, to 35.1 billion euros, Telefónica also announced, which launched a new strategic plan in the first year of the new president, Marc Murtra’s term.
“We made difficult but necessary decisions to strengthen ourselves and grow faster,” said Murtra, who assumed the presidency in January 2025, in a statement, after presiding over the advocacy group Indra.
The group’s debt fell 1.2% last year, to 26.8 billion euros.
The operator, which aspires to become one of Europe’s leading technology companies in the coming years, announced in November that it expected total savings of up to 2.8 billion euros in 2028 and three billion in 2030.
Telefónica intends to focus on its four main markets: Spain, Germany, the United Kingdom and Brazil.
On February 10, after the end of the 2025 financial year, the company announced the completion of the sale of the subsidiary in Chile for 1.03 billion euros.
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