The world's largest Cava producer, Freixenet, has presented a plan for a far-reaching redundancy procedure (Expediente de Regulación de Empleo, ERE), which is expected to affect 180 of its 738 employees. Several Spanish media outlets reported this consistently on April 24th. In a press release, the company, based in the Catalan town of Sant Sadurní d'Anoia, had announced its intention to cut 24% of its jobs. The layoffs affect the companies Freixenet SA and Segura Viudas SAU, but not Comercial Grupo Freixenet SA.
Freixenet justifies the measure with the "restructuring of its production sites," as the drought has plunged the Cava sector "into a crisis," as stated in a communication. "Extreme weather events and the persistent drought in Catalonia in recent years have severely hit the entire industry," according to Freixenet. "Reduced inventories and rising raw material costs exacerbate the mismatch between market demand and operational sustainability," the Cava producer states.
The news comes as a surprise because, as reported by the business newspaper 'Cinco Días', Freixenet had been in negotiations with its workforce since the beginning of the year regarding the renewal of the collective bargaining agreement, and the regional government declared the end of the drought earlier this month, to which the company responded by pointing to the long-term processes involved in Cava production. The sparkling wine giant had already implemented temporary short-time work measures (known as ERTE, temporary employment regulation files) in 2024.
The personnel reduction at Freixenet comes at a time when the Cava sector is shrinking. The Regulatory Council of D.O. Cava announced last month that Cava producers sold 13.4% less in 2024, with total sales volume at 218m bottles, representing a revenue decline of 4.4%.
"With this step, Freixenet aims to set the course for the sustainable development of the company. Freixenet is determined to emerge stronger from the crisis and continue to supply high-quality sparkling wines and wines for consumers around the world," the announcement states. The company is pursuing this process with a "deep understanding of the impact on all employees and their families." To date, Freixenet is the only major Cava producer that has announced large-scale layoffs. SP
