Avatel Telecom Launches New Job Cuts Affecting Most of Workforce

Avatel Telecom, now controlled by an Andorran family office and previously involving Andorra Telecom as a shareholder, has launched a new employment regulation procedure (ERO) to cut jobs across much of its workforce.

The announcement comes just days after the company revealed it had taken a majority stake in the Catalan operator Parlem. It follows a major redundancy round exactly one year ago, when around 600 staff left through negotiated exits. Avatel, led by Encamp native Víctor Rodríguez, contacted unions this week to outline further reductions amid what it described as challenging economic conditions.

The group employs roughly 1,800 people in total. The affected work centres, covering most of its operations, have about 1,195 staff. Unions cited in Spanish media said the exact number of potential job losses remains unclear at this stage.

Staff representatives expressed frustration that the ERO coincides with ongoing talks for a new collective bargaining agreement. They called it a profound lack of tact and disrespect towards workers.

Avatel expanded rapidly in recent years, starting on Spain's Costa del Sol and acquiring small regional operators to build a fibre network serving growing numbers of customers across multiple territories. That aggressive growth, however, appears to have led to overstaffing, with duplicated and excessive roles that the 2024 cuts failed to fully address. Unions noted the need to amortise these positions as the company adjusts to its scale.