The operator said negotiations with employee representatives will begin on September 2015 in a move that could see nearly 25% of its workforce affected.
"The collective dismissal procedures will affect a maximum of 1,300 people" said the company which employs approximately 6,100 people in Spain. "The procedures are part of the integration process of Vodafone and Ono."
Vodafone acquired Ono for €7.2 billion in March 2014, adding broadband and cable services to its Spanish mobile business.
In addition to the acquisition of Ono, the redundancies are also a result of the decrease in sales and EBITDA of both companies, as well as large investments in next-generation networks.
Last week, the company reported a 1.5% decrease in Q1 revenue in Europe. Revenues in Spain declined 5.5% last quarter from the previous year.