Telefónica, the Spanish telecommunications giant, faced significant losses in 2025, recording a deficit of 4.318 billion euros. This downturn was largely attributed to the financial repercussions of exiting multiple Latin American markets such as Argentina, Peru, Uruguay, Ecuador, and Colombia, alongside costs linked to a large-scale layoff plan known as the ERE. Specifically, the exit from these markets contributed 2.384 billion euros to the overall losses, while the restructuring expenses added a staggering 2.900 billion euros - a significant portion (2.500 billion euros) of which is tied to the ERE implemented in Spain.

The reported losses for Telefónica in 2025 are nearly 40 times greater than the previous year and mark the continuation of a troubling trend for the company, which has now faced three consecutive years of deficits. Despite the severe impact of these extraordinary financial events, Telefónica indicated that, absent these disruptions, the company would have shown a profit of 2.122 billion euros, which represents a 19% decline compared to the prior year. Moreover, overall revenues for the company reached 35.120 billion euros, reflecting a 1.5% decrease primarily due to the reduced footprint following the market sales, although on an organic basis, revenues improved by 1.5%.

As the company looks ahead, these financial results highlight the challenges it continues to face in restructuring and adapting to changing market conditions. The losses underscore the risks associated with international operations and significant restructuring efforts, as Telefónica navigates a path forward, aiming to stabilize its financial performance while potentially exploring avenues for reinvestment and recovery in its remaining markets.