Zegona, the new owner of Vodafone Spain, has reached an agreement with the Spanish trade union Unión General de Trabajadores (UGT) over planned job cuts at the telco.

As reported by ABC Economy, there will still be job cuts at the carrier but around 25 percent less than initially proposed.

An agreement has been reached to terminate the employment of 898 workers at the telco. It had initially been expected that 1,200 people would lose their jobs.

"By a very large majority (1,821 votes in favor of the agreement versus 468 against), the Vodafone Spain workforce has chosen to accept the latest offer presented and, consequently, tomorrow UGT will sign the agreement that sets the conditions for the collective dismissal process presented by the company," the union said.

It's reported that the redundancy package for those impacted provides for compensation of between 33 and 45 days salary per year worked, with a limit of 24 monthly payments for the affected staff.

Zegona has also committed to not carry out any further collective dismissals until December 31, 2025.

Zegona, which was founded in 2015 by former Virgin Media executives Eamonn O'Hare and Robert Samuelson, finalized its €5 billion ($5.4bn) acquisition of Vodafone's Spanish unit at the end of May.

Shortly after taking over, the company announced plans to reduce its headcount by a third at Spain's third-largest mobile operator with around 13.5 million mobile customers in the country.

Vodafone stated that the cuts need to be made for "economic, productive, and organizational reasons" to ensure the company's future viability.

The plans were slammed by UGT, which threatened the company with regular strike action this month.