Vodafone Spain is set to cut up to 1,200 jobs, more than 20 per cent of its workforce.

In a statement, Spain’s third largest operator said the move is justified for “economic, productive and organisational reasons”. With almost half of its customer additions associated with low- and medium-cost offers, impacting revenue and profitability, it therefore needs to have a cost structure which enables it to compete profitably.

The company also said customers are demanding an “agile, simple and immediate relationship”, leading it to streamline its organisational model.

By reversing the “negative evolution” of the business, it will be able to reinforce its sustainability, protect investment capabilities and adopt a more competitive organisation, it continued.

Vodafone Group’s last results statement pointed to weaker service revenue in Spain, as it worked to improve the competitiveness of its offer, particularly in the low-cost segment. It also suffered TV customer losses following a decision not to renew some unprofitable football rights deals.

The company recorded a write-down in the valuation of the Spanish business at that time.

At the end of this month, Vodafone Spain will enter a consultation period with staff representatives.

In its last annual report, Vodafone Group said it had around 5,000 employees in Spain.