Telefónica Digital, set up in 2011 to develop mobile and digital marketing solutions, will be integrated into the O2-owner’s central operational unit, dubbed the Global Corporate Centre, as will regional business units Telefónica Europe and Telefónica Latam.
As a result of the closure of Telefónica Digital, its former president Matthew Key has been moved to Telefónica UK, essentially O2, in an as yet unspecified role working alongside Ronan Dunne.
The company says the move will align digital with all commercial activity as well as “increasing efficiency through simplification and cost-cutting”. It said in a statement that it is also looking to cut costs by €1.5bn “in the next years”.
It is not clear if any jobs will be lost as a result of the closure. The business was based in the UK but digital development will now be run from Madrid.
Telefónica Digital was set up in September 2011 with the aim of “transforming Telefónica into a digital telco” by developing products and services “leveraging the power of technology”.
It also operated a digital advertising innovation unit creating video, data and other rich media advertising solutions and just this week struck its first ever pan-regional mobile advertising deal, targeting male smartphone owners across Brazil, Argentina, Mexico and Colombia.
Telefónica says Telefónica Digital has delivered annual revenue growth of 20 per cent since its inception.
Despite the closure of the business, Telefónica inists it is still committed to becoming the “leading digital telco” and “is at the centre of the digital revolution”. It has created the role of chief commercial digital officer to explore new revenue streams.