Telefonica has reportedly told its unions it wants to cut another 2,500 jobs on top of the 6,000 redundancies already proposed.
The cuts would affect a quarter of the telecommunication firm’s staff in Spain and would be made over the next five years.
The Spanish government now has to approve the layoffs – which would all be voluntary. After that Telefonica’s management and its unions would have 30 days to agree on a final staff reduction plan.
Telefonica’s domestic business has suffered tough competition in a stagnant economy.
It posted a record net profit of 10.2 billion euros for 2010 as weakness in Spain was offset by strong growth in the rest of Europe and Latin America.