BUSINESS

Telefónica recentralizes global management to save costs

Latin America, Europe and Digital corporate centers to be absorbed by Madrid

Telefónica Chairman César Alierta.
Telefónica Chairman César Alierta.efe

Telefónica on Wednesday unveiled a major overhaul of the telecoms giant’s top management structure that involves a recentralization of functions aimed at saving costs and increasing revenues.

The makeover strengthens the position of the company’s chief executive officer, José María Álvarez-Pallete, and means the disappearance of the three current large corporate centers - Telefónica Latin America based in São Paulo and Telefónica Europe and Telefónica Digital based in London - as the company moves to a global corporate structure centered in Madrid. The three major divisions were set up in 2011.

The company’s operations in the major countries where it is present such as Spain, Brazil, Germany and Britain will report directly to Álvarez-Pallete.

The chairman of Telefónica Latin America, Santiago Fernández Valbuena, is to take up a newly created post as director of strategy. Eva Castillo, who currently heads up Telefónica Europe, will remain on as a director. Matthew Key, who heads Telefónica Digital, will remain as director of Telefónica’s British operations.

The company’s digital operations, which have so far failed to yield the expected results, will be headed up by Eduardo Navarro, whose official title will be chief commercial digital officer, “who will be responsible for fostering revenue growth.”

The structure gives greater visibility to local operations, bringing them closer to the corporate decision-making center and simplifying the global structure.