(Reuters) -Telefonica on Monday officially told labour union representatives that it intends to cut jobs in Spain, the UGT union said.
The telecoms company did not indicate how many jobs it intends to cut, the union said on its website.
Spanish newspaper Expansion said the company wants to reduce its 21,000-worker payroll by 2,500, while rival newspaper Cinco Dias said the company may cut as many as 3,000 jobs.
"Next week the negotiating tables on these redundancies will be set up and the official number of workers affected will be communicated," an UGT spokesperson told Reuters.
A spokesperson for Telefonica (BME:TEF) confirmed the company told the unions it planned layoffs.
The cuts are part of the company's three-year strategic plan to boost profitability by reducing capital expenditure, raising revenue and cutting costs.