Thursday, January 28, 2010

Telefonica finally notices the global downturn

Last year my company went through a major downsizing exercise. Chaos reined as people spent most of their days speculating who would go in the next mass firing. The good old days of business class travel and expensive meals have definitely faded into the past.

Perhaps Telefonica thought they were immune to the global downturn, but losing a billion dollars overnight in Venezuela seems to have finally woken them up. It amazed me was that upon losing the said billion, the company immediately reiterated that their earnings guidance hadn’t changed.

Apparently Alierta went batshit crazy and took a chainsaw to budgets all over the company. But where do you get a billion in earnings on short notice? Most likely by firing contractors, shutting down all non-essential travel, and slashing marketing budgets (or raiding some rainy day slush fund hidden somewhere in South America). And of course their favorite, sticking random charges on people’s bills and hoping they don’t notice.

1 comment:

Anonymous said...

ah, so that's why they turned off our voice service for 2 days, hoping we would call their 902 toll number. Instead we went to a telefonica store and used their phone to call and see what was going on. Nothing was going on. When we got home the phone was back on.