Freixenet has announced a major restructuring plan that could see up to 180 jobs cut in Spain, around 24% of its national workforce. The company cites the ongoing drought in Cataluña as the main reason behind this decision.

The cava producer confirmed on Thursday, April 24, that it will launch an Expediente de Regulación de Empleo (ERE), a formal process used in Spain to reduce staff. The move follows years of poor grape harvests caused by severe and persistent drought conditions, particularly in the Penedès region.

Climate Change Forces Operational Overhaul

It has been reported that extreme weather patterns and the long-term consequences of years of drought have created serious disruptions in the industry, pushing the cava sector into an unprecedented crisis. The falling production levels, low reserves, and rising raw material costs have made it difficult to match market demand with sustainable operations.

Freixenet had already implemented a temporary furlough (ERTE) in 2023 affecting 615 workers. That measure remained in place until the end of 2024. However, the continued decline in grape yields has forced the company to take more permanent steps.

ERE Will Affect Two Key Divisions

According to reports, the job cuts will affect staff at Freixenet SA and Segura Viudas SAU, while the commercial division, Comercial Grupo Freixenet, remains unaffected. The company currently employs 738 people in Spain.

Despite a rise in prices, total cava sales dropped by 13.4% in 2024, according to the Denomination of Origin Cava. Freixenet admits that a fundamental shift in the market requires urgent changes to secure long-term business sustainability.

Company Promises Support for Workers

Freixenet says it is committed to managing the process with care and sensitivity. ‘We are fully aware of the impact this has on employees and their families and are determined to support them during this transition,’ the company stated.

The plan is part of Freixenet’s wider efforts to adapt to climate challenges while maintaining its role as a leading cava producer.

Spain’s Drought Crisis

Spain is dealing with one of its most severe droughts in recent history. As of September 2023, 14.6% of the national territory was in a state of emergency due to water shortages, with an additional 27.4% on alert. As of early 2024, Cataluña’s internal reservoirs had fallen below 16% capacity, prompting the regional government to declare a state of emergency and extend water restrictions to Barcelona and surrounding areas.

Some reservoirs, like the Sau, reached historical lows of just 5.1% capacity. The prolonged drought, exacerbated by climate change, has led to significant agricultural disruptions, including a 12.1% decline in agricultural employment in Cataluña between 2021 and 2023.

While recent heavy rains have provided some relief, experts warn that the parched and compacted soil often leads to rapid runoff, preventing effective absorption and failing to replenish groundwater reserves. This phenomenon exacerbates the drought’s impact, leading to flash floods without alleviating the underlying water scarcity.

Main Image: Grupo Freixenet / Creative Commons