Freixenet, the well-known cava producer, has decided to initiate a redundancy plan that will affect up to one hundred and eighty employees in Spain, which represents approximately twenty four percent of its total workforce. The company justifies this action as a necessary step to restructure its production operations in response to the current crisis faced by the cava industry amidst extended drought conditions.

In its official statement, Freixenet highlighted that the persistent drought has led to a significant decrease in cava production. The company pointed out that shrinking reserves and increasing raw material costs have created a mismatch between market demand and operational sustainability. This announcement follows a temporary employment regulation application made last year, which was deemed unjustified by local authorities.

The redundancy plan will impact the Freixenet and Segura Viudas subsidiaries, while the commercial division will remain unaffected. The company emphasised that despite these cuts, it is committed to addressing the challenges posed by changing market dynamics and aims to ensure the long-term viability of the business.

Unai Sordo, the Secretary General of the labour union CC.OO., expressed solidarity with the affected employees, highlighting the challenges faced by workers in various sectors despite overall improvements in employment statistics. The cava industry has encountered difficulties recently, with sales down across both domestic and international markets, exacerbated by the adverse effects of ongoing drought conditions.