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Telefonica says goodbye to 23% of its staff in Mexico

After the regulations of the Federal Telecommunications Institute (IFT) in Mexico has changed the pace and dynamic of competition between the operators at the national level.

Enabling the entry of foreigners like AT & T competitors, as well as the creation of virtual mobile operators (MVNO), the pace of the market has been altered, and this has apparently affected indirectly to Telefónica and its company Movistar.

According to a report by CNN Expansion group, from January to March 2017 operator Telefonica in Mexico would have cut about 600 jobs, which would represent a reduction of 23% of its workforce.

The reengineering of processes and cutting operating expenses would have been the main determinants for these dismissals, as they point to four anonymous informants in an interview with the news group that has filtered these changes.

Spokesmen for the operator have shared a statement on the subject, where, without directly endorsing the number of trimmed staff, yes talk about their recent changes:

Telefónica Mexico continues to be ever more efficient company, and in this last year we have made progress in the automation of various processes, allowing us to do more with less and thus manage 27 million customers with 2,000 people, a global benchmark.

One of the variables of greater weight to make this drastic reduction would be the average spending of the subscribers of the operator. Since, in the market of prepaid users tend to invest about USD $90 per month, but in the case of Movistar the amount drops to the MXN $66.

If the formula is added to economic uncertainty and financial volatility and aggressive change in this other sectors within Mexico would be more than clear the reason for this hard movement.

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