Freixenet To Cut 80% Workforce

Spanish cava producer Freixenet has proposed a plan to temporarily lay off 615 workers, which accounts for nearly 80 per cent of its workforce, due to a drought in Catalonia's Penedes area, as stated in a press release on Monday.

The layoffs are expected to take effect in May, although the duration of the layoffs was not specified by the company.

This move positions Freixenet as one of the first companies in Catalonia to address the region's severe drought, which is considered the worst on record. The company has presented the plan to Catalan labor authorities and has shared it with workers' unions.

As the impact of climate change, exacerbated by fossil fuel usage, escalates across southern Europe, drought conditions since 2021 have led to a shortage of grapes. Last year, this scarcity was particularly acute in Freixenet's home region of Penedes, noted the cava producer.

Utilising Spain's ERTE law, companies facing exceptional circumstances have the option to temporarily lay off employees or reduce their working hours.

Freixenet stated, "The measure is designed to ensure the company's viability and preserve job opportunities in response to external factors and force majeure events resulting from the severe drought."