Telefônica Vivo will eliminate a thousand jobs in Brazil.
The company announced a voluntary redundancy program (PDV), according to the Telecommunications Workers Union in the State of São Paulo; the measure aims to cut costs, which includes the sale of infrastructure.
Reuters Telefônica Vivo opened a voluntary redundancy program this week to reduce its workforce by about 1 employees in Brazil, a union reported on Wednesday.
The company --which operates in fixed-line telephony, mobile telephony, broadband, and pay TV-- opened the program to interested parties in several states across the country, said the Telecommunications Workers Union in the State of São Paulo.
In a press release, Telefônica Vivo stated that it "is conducting an administrative reorganization with the goal of maintaining competitiveness," without specifying how many jobs it intends to eliminate.
"The reorganization involves, in addition to redefining the organizational structure, adjustments to the workforce, especially in the states of São Paulo and Rio de Janeiro," according to the company.
Telefônica Vivo's preferred shares were up 1,54 percent at 12:43 pm, while the Ibovespa index was up 0,97 percent.
The planned staff reduction will occur at a time when the company is cutting infrastructure costs, with a strategy that includes selling telecommunications towers.
On Tuesday, the company announced an agreement with the operator Claro for a network sharing plan focused on fourth-generation (4G) mobile telephony.
At the end of February, the company announced a profit of 1,474 billion reais in the fourth quarter, a result exceeding analysts' expectations.
(By Alberto Alerigi Jr.)