Adamo proposes a redundancy plan for 31.5% of the workforce

Adamo, the telecommunications operator specializing in providing services in rural areas—which was acquired by the private equity fund Ardian —has specified the scope of the layoffs it announced on June 6, specifying that it intends to affect 83 employees, which, according to union representatives, represents approximately 31.5% of the total workforce, set at approximately 263. Almost the entire workforce is located at the Barcelona headquarters, but the layoffs will also be affected in Madrid, Seville, and Cantabria. Barcelona has 206 employees, while Madrid has 50 people, Cantabria has 4 workers, and Seville has another 3, meaning that the bulk of the impact will be in Barcelona.

Causes of the procedure

The file filed by Adamo is primarily due to economic reasons, according to the company, stemming from the investment effort made in the deployment of the fiber optic network. The amortization of the debt associated with this investment has generated significant liquidity pressures, affecting operating margins and resulting in negative results.

There are also organizational and production-related reasons, given that the company believes it is necessary to restructure its processes and organizational model to adapt to market changes, incorporate new technologies, and return to a path of sustainable growth.

Expected scope

Adamo has proposed an impact on 90 jobs, with the anticipated termination of 83 contracts, representing 31.5% of the current workforce. In other words, the company is proposing to terminate 90 positions, although there are actually seven vacancies in that group, resulting in 83 layoffs.

UGT has stated its intention to demonstrate the nullity of this measure. However, if management maintains its position, the union has stated that it will advocate for negotiations aimed at drastically reducing the number of layoffs; establishing job and relocation guarantees; setting adequate compensation; ensuring maximum transparency and access to information; and developing a shared plan for the future.

The company has expressed its willingness to carry out this process through dialogue, with the utmost respect for the people affected and within the applicable legal framework.

Controlled by Ardian

Adamo was acquired by the French fund Ardian in 2021, at the height of the fiber optic operator bubble, for an amount exceeding one billion euros, although the majority of the acquisition was made with debt.

The operator's management has recently changed, as the group's previous CEO, Carlos Ávila, was replaced in early May by Miguel Ángel Rodríguez Sola, a manager with extensive experience in strategic consulting and the financial sector. Rodríguez Sola was most recently a senior advisor at Boston Consulting Group and was CEO of Wizink until 2024. He previously served as president of Lendrock and Aplazame , and throughout his career he has held senior management positions at Boston Consulting, McKinsey, Lloyds Banking Group and Banco Santander, both in Spain and in the United Kingdom and the United States.