Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Indra, a Spanish multinational technology company operating in the IT, consulting, security and defence sectors, announced plans to cut 1,850 jobs in Spain.
The measure is justified by the need to increase its profitability. The company recorded losses of €92 million in 2014. The plan is supposed to begin in the third quarter of 2015. In addition, the company is planning to sell its Telecom & Media unit to Ericsson. Accordingly, the 2000 workers who are employed in Spain and South America in this unit are at risk of losing their jobs. The job cuts will affect the Indra Sistemas division, which includes activities in information technologies, security, defence, traffic and transport.
The company has presented a collective dismissal affecting 1,850 employees. 80% of the dismissals will be concentrated in the consulting department. Moreover, between 70 and 80% of the workers dismissals will come at the offices located in Madrid.
Update 27/07/15: As a protest against the restructuring measure, an indefinite strike commenced at Indra Sistemas on the 27th of July of 2015. 13,000 employees across Spain are called to be involved. According to the trade unions, the motivation for the labour force adjustment plan is still unknown. The negotiation between the company and the trade unions on the labour force adjustment will end on the 6th of August of 2015.
Update 5/08/2015: The company and the majority of the legal representatives of workers have achieved an agreement on the adjustment plan. Finally, the number of workers subjected to redundancies will be 1,750. Most of the workers will be dismissed in the last quarter of 2015. However, the restructuring plan will ultimately be complete in December 2016. Early retirement schemes will be initiated for workers older than 56 years. Severance pay agreed will be equal to 40 days per year worked up to a maximum of 24 months entitlement. The initial proposal of the company was 20 days per year worked.
Eurofound (2015), Indra sistemas, Internal restructuring in Spain, factsheet number 79440, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/79440.