According to the recent developments in the earnings made by Telefonica, the leading telecom firm in Spain, the net profits of the firm have gone down by a tremendous 16.2% in the first half of the year to 3.162 billion Euros now.

It was further revealed that the profits in the second quarter went down by about 27.4% from what it had been at the same time last year. The position it had been in last year was 1.538 billion Euros. The firm is of the view that the reason for such a slump is the revaluation of the stakes which has given way to reduction in profits of about 353 million Euros in a period of more than six months.

It was also revealed that the operating income before the calculation of amortization as well as depreciation increased by as much as 3.7% and was 11.304 Euros, most of which was as a result of the growth being witnessed in Europe and Latin America.

The firm is of the view that it is going to cut down 6500 employees in the next three years. They are planning to do this as a part of their redevelopment program, and this shall be complete at a pre-tax cost of 2.7 billion Euros.