Freixenet to Lay Off 80% of Workforce Amid Worst Drought on Record in Catalonia

Freixenet, a world-renowned cava producer in Catalonia, Spain, has announced plans to temporarily lay off up to 80% of its workforce due to the region's worst drought since weather records began. The severe drought conditions have caused grapevines to wither, leading to a shortage of grapes and a crisis in the wine sector.

The company has presented a furlough plan to Catalan labor authorities that would temporarily lay off 615 of its employees, nearly 80% of its total workforce, starting in May. Freixenet stated that the exceptional measure is aimed at 'guaranteeing the operation of the business and preserving employability' in the face of the external causes and circumstances beyond control resulting from the persistent drought.

Catalonia has declared a drought emergency in its largest eastern, coastal catchments, including the Penedès area where Freixenet is based. The famous vineyards of the region have become completely dry, with the roots of 30-year-old vines dying and grapes shriveling under the intense sun. Spain has experienced record-breaking warm temperatures recently.

Why this matters: The severe drought in Catalonia and its impact on major businesses like Freixenet highlight the growing challenges posed by climate change to agriculture and the economy. As extreme weather events become more frequent and intense, industries and governments will need to adapt and develop strategies to mitigate the consequences.

Freixenet is one of the first companies in Catalonia to announce a temporary layoff plan in response to the drought. The company has submitted the plan to the workers' unions and is awaiting approval from the Catalan business and employment ministry.

Key Takeaways

• Freixenet, a major Spanish cava producer, to lay off up to 80% of workforce due to drought.
• Severe drought in Catalonia has caused grapevines to wither, leading to grape shortage and wine crisis.
• Catalonia declares drought emergency, with vineyards becoming completely dry and grapes shriveling.
• Freixenet's layoff plan aims to 'guarantee business operation and preserve employability' amid drought.
• Drought highlights climate change's growing impact on agriculture and economy, requiring adaptation.