Telefonica has announced a large-scale restructuring of its business, which will include the establishment of a new 'digital' unit based in London that will see much of the operator’s business lines move from Spain to the UK.

The new unit – known as Telefónica Digital – will become one of Telefonica’s three principal business divisions alongside Europe and Latin America, with its home market of Spain – which was previously a standalone unit – rolled into Europe.

Telefónica Digital will comprise 2,500 staff drawn from Telefonica New Global Services Unit (vertical businesses), Terra, Tuenti, Jajah, R&D and Media units, among others. The new unit will be headed by Mathew Key (pictured), currently head of Telefónica Europe.

In a statement, Telefonica said that the new London-based unit would aim “to bolster Telefonica's place in the digital world and leverage any growth opportunities arising in this environment, driving innovation, strengthening the product and service portfolio and maximising the advantages of its large customer base.”
 
The firm also announced a new ‘Global Resources’ operating unit “designed to ensure the profitability and sustainability of the business by leveraging and unlocking economies of scale, as well as driving Telefonica's transformation into a fully global company.” This unit will be overseen by Guillermo Ansaldo, until now the head of Telefónica Spain. It has not been announced where this unit will be based.

José María Álvarez-Pallete, head of Telefónica Latin America until now, will oversee Europe, while Santiago Fernández Valbuena, previously general manager of Strategy, Finance and Corporate Development, will be in charge of Latin America.

The new organisational structure, which was approved yesterday by Telefonica’s board, is designed to “speed up the decision-making process, and to balance and streamline the organisation,” the firm said.