Lorraine Williamson
Freixenet, one of the world’s largest cava producers, has confirmed plans to implement a redundancy scheme affecting 180 employees across its operations. The Freixenet job cuts are part of a wider response to ongoing drought conditions in Catalonia.
This decision, representing 24% of the workforce, is due to the drought conditions in Catalonia, which have severely impacted grape production in the region.
Drought crisis hits production
The company operates primarily in the Penedès wine region of Barcelona, which has experienced a dramatic 45% reduction in grape yields since 2022. The prolonged drought has strained resources, leading to a scarcity of raw materials and rising production costs. Freixenet stated that these conditions have made it unsustainable to continue with current workforce levels.
As production slows, the company is adjusting its staffing to align with reduced output. A company spokesperson explained that the market dynamics have shifted significantly, requiring urgent measures to ensure long-term sustainability. This restructuring is intended to allow Freixenet to adapt to new market conditions, securing the company’s future while managing operational challenges.
Support for affected employees
Freixenet has expressed awareness of the impact this redundancy will have on its employees and their families. The company has pledged to handle the process with care and sensitivity, prioritising employee support throughout the transition. It plans to collaborate closely with legal representatives to manage the process and engage in necessary negotiations to ease the effects of the job cuts.
The redundancy announcement follows a similar move made earlier in 2024, when Freixenet introduced a temporary labour regulation (ERTE) to suspend 615 workers due to the drought’s economic toll. This earlier measure was rejected by the Generalitat, highlighting the challenges the company faces in balancing workforce needs with environmental impacts.
Looking to the Future
Freixenet’s decision to reduce its workforce is a response to a combination of environmental and economic factors. While the company’s long-term outlook remains focused on sustainability, it is clear that these unprecedented drought conditions have forced difficult decisions. Freixenet remains committed to preserving its global presence while adjusting its operations to the realities of the changing climate.