Telefónica Digital axed in restructure

Telefónica has closed its Telefónica Digital sub-brand as part of a restructure of the business aimed at simplifying decision-making and cutting costs. 

telefonica-building-2014-fullwidth
O2-owner Telefónica says closure of Telefónica Digital will simplify decision-making and cut costs.

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. 

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here