Vodafone Spain revealed plans to cut up to 515 employees, blaming intense competition for a need to restructure the business and press on with digital transformation efforts.

The operator stated the move was part of a reorgnisation plan to become a digital and agile operator in a challenging and competitive Spanish market.

Its plan comprises a 12 per cent reduction in its Spanish workforce, Spanish trade union UGT explained in a statement slating the move. It noted there had already been four rounds of cuts at Vodafone Spain in recent years, resulting in 3,500 layoffs.

“The decision to initiate this procedure is justified for economic, productive and organisational reasons,” Vodafone Spain argued. “The intensity of competition in prices and the drift towards low-value rates in Spain has caused a sharp drop in revenues and a significant deterioration in margins.”

A consultation period for the latest staff reductions, which are focused on its commercial operation, is due to start at the end of September and last a month.

Vodafone Spain highlighted it had announced a new R&D centre in the market earlier this year, supporting “600 highly qualified and specialist jobs”.

Over several years executives from Vodafone Group and rival Orange have regularly pointed to stiff competition in the Spanish market.

Orange cut the value of its local division and announced its own round of layoffs earlier this year.