Global Telecom Layoffs Accelerate

January 04, 2024
Global Telecom Layoffs Accelerate

Telefonica is the latest operator to announce massive job cuts.

They are cutting 15% of the entire Spanish labour force with more cuts planned in 2026.

2024 will see a very significant increase in Telco job cuts for all of the reasons that we predicted in earlier posts.

What is amazing is that network utilization as never been higher, which should mean record profitability... that is is in a world where pricing is rational.

The Telecom Operator community refuse to bite the bullet, and do what is required and that is to very significantly (double digit) increase prices on an annual basis and unwind unlimited plans for Wireless and Home Internet.

The reality is that the decision not to do this probably has come too late for the vast majority of Telecom Operators; as they should have never gone 5G unlimited at the start of the 5G "growth" cycle. Home Internet utilization should have been capped with overage charges years ago and pre-pandemic.

The entire business model of Telco no longer works in a world of increasing interest rates (the 20 year downward direction of interest rates is over.)

You'll see below a series of posts where we spoke to this reality :

2023-02-20 - Double Digit Price Hikes Throughout Europe For Wireless :

2023-01-16 - 2023 Will See Massive Retail Telecom Layoffs - Death Of Telco Retail & Telecom Dealer Communities :

2022-12-20 - Average Smartphone Lifecycle Is 3.5 Years & Smartphone Costs Will Continue To Escalate :

2022-12-22 - Global Telecom Executive Shakeup Continues Now With Orange Group :

2022-12-05 - What Do The Executive Changes At Vodafone & Verizon Mean For The Global Telecom Industry As A Whole? :

2022-10-27 - UK Telco Regulator (OfCom) Urges Telcos To Resist Price Hikes :

2022-09-21 - 5G Uses How Much Electricity? You Can’t Be Serious…. Wireless Rate Plan Prices To Increase Dramatically! :

2022-08-22 - Expect To See Major Price Hikes In Rate Plans For Wireless & Home Internet Due To Chord Cutting :

2022-07-13 - All 3 US Telco's Raise Prices ... The Continuation Of An Accelerating Global Trend :

2022-07-05 - Samsung To Raise Chip Prices By 20% : Handset Costs To Soar :

2022-06-03 - Lower Handset Sales For The Remainder Of 2022 & 2023 Means Big Trouble For Telco :

2022-01-22 - Roaming Charges To Increase In EU & UK :

2021-11-08 - mobilityView Once Again Ahead Of The Curve On 5G & Cost Structure For Wireless Operators :

2021-10-12 - Canada Has The Highest Cellular Phone Costs In The World :

2020-08-24 - Consequences Of A Huawei Smartphone Ban Will Translate Into Higher Prices For Devices :

2020-08-18 - Smartphone Shipments Nose-Dived 20% During Q1 What Is The Impact To Telecom Operators? :

2020-08-12 - How Much Does Mobile Data Cost Around the World? :

The only path forward is innovation and doing things differently and launching "new to the world" services rather than products and services that are "new" to the Telecom Operator but that their customers have been already using for 10 years... 20 years... 30 years (yes that is correct).

Partnering with mobilityView Inc. is a good step on that innovation journey & we suspect executives at all levels in Telecom Operators are being told by their CEO - "Show me what you are doing differently"

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