Telefónica SA is entering a decisive phase of restructuring as it withdraws from Latin America's Spanish-speaking markets to consolidate operations in Europe and Brazil. The Madrid-based telecoms group, led by Chief Executive Marc Murtra, has confirmed plans to exit Mexico, Chile and Venezuela—its last remaining Hispam (Hispanoamérica) markets—pursuing a strategy first announced in 2019 and now reaffirmed through its new five-year plan, Transform & Grow.

Under the plan, Telefónica will centre its activities on Spain, the United Kingdom, Germany and Brazil, which Murtra described as the firm's "core markets." This reflects an operational shift towards becoming a "world-class European operator with profitable scale," supported by investments in network modernisation, artificial intelligence and digital convergence. According to the company, the Transform & Grow programme targets annual revenue growth of up to 3.5% by 2030 and up to €3bn in operational savings through simplification, automation and asset disposals.

Brazil, operating outside Telefónica's Hispanic America division under the Vivo brand, will remain the group's sole Latin American presence, given its market size and relative economic stability. 

The long-anticipated exit follows a series of asset sales across the continent and earlier reports of a sweeping redundancy programme set to affect more than 6,000 workers before year-end. Telefónica sold its Peruvian subsidiary to Integra Tec International for around €900,000, and divested its Argentine, Uruguayan, Colombian and Ecuadorian units to Millicom and Telecom Argentina, generating more than €3bn in total proceeds. In Mexico, El País reported that Telefónica is nearing completion of the €500mn sale of its Movistar business to Beyond One, owner of Virgin Mobile México, pending approval by the new National Antimonopoly Commission. Negotiations in Chile involve a joint offer from América Móvil and Entel.

Financially, the shift has proved costly. Telefónica reported a net loss of €1.08bn to September 2025, compared with a €954mn profit a year earlier. Revenues from its Hispam division fell 11.3% year-on-year to €3.15bn. Analysts cited by Expansión estimate that proceeds from ongoing sales could reach €3.6bn, though the company faces immediate restructuring costs, including a redundancy plan that may affect up to 7,000 employees.

Murtra maintains the Latin American withdrawal is purely strategic, not political, and aimed at enhancing stability and financial resilience. The repositioning also aligns with Telefónica's push for consolidation within Europe's fragmented telecommunications landscape, which is home to over 40 operators serving half a billion users, far more dispersed than the concentrated markets in the United States and China.