Telefonica to Lay off 700 Workers - Source

MADRID -(Dow Jones)- Telefonica is preparing to negotiate layoffs of around 700 employees in Spain as part of a restructuring of the company's mobile division, a person close to the situation said Friday.

The layoffs are part of a restructuring Telefonica launched to integrate its wireline and mobile business, the person added.

A spokesman for Comisiones Obreras said the labor union had received a request from Telefonica to lay off the workers and will negotiate the conditions with the company in the future.

Telefonica is Spain's largest telecommunications company by market value and subscribers.

-By Jason Sinclair, Dow Jones Newswires, 34 913958127, jason.sinclair@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 19th September 2008