Amazon’s Layoff Plan: Impact on Employees in Barcelona and Madrid
A recent announcement from Amazon has sent shockwaves through its workforce, revealing plans to implement an aggressive adjustive strategy affecting 14,000 employees globally. Notably, the Spanish branches in Barcelona and Madrid are among those impacted, with the Employee Record of Employment (ERE) detailing significant layoffs.
Reduction in Layoffs: Barcelona’s Numbers
Initially, Amazon planned to cut 978 positions at its Barcelona office. Following negotiations with unions, this figure has been successfully reduced to 791 layoffs. This change marks a 19% decrease and reflects a deeper commitment to protecting jobs during this turbulent time. According to RTVE, the Barcelona office originally employed approximately 2,800 people, meaning the layoffs represent an overall reduction of 28%.
Key Negotiation Outcomes
The negotiations spearheaded by CCOO, the major labor union, achieved improvements beyond the mere reduction of layoff numbers. Key elements of the agreement include:
- Voluntary departures.
- Options for permanence for protected groups.
- Relocation opportunities within the Amazon group for affected employees.
This agreement illustrates a proactive approach to minimize the layoffs’ effects on local employees, considering their welfare and future employment prospects.
Enhanced Compensation and Benefits
One crucial aspect of the negotiation involved compensation packages for dismissed workers. The agreed terms include:
- 38 days’ pay for each year worked, capped at 24 monthly payments.
- A minimum payout of €7,000 for every affected employee.
- Paid leave until February 28, entwined with opportunities to purchase company shares.
Additionally, employees whose visas are linked to their contracts will receive an extra €1,500 and will have their medical insurance covered until May 31.
Broader Implications: More Automation, Less Workforce
This wave of layoffs ties into a broader trend within Amazon, linking the cuts to the automation of workflows and the increasing reliance on artificial intelligence. Union representatives suggest that these layoffs might be a precursor to a relocation strategy toward regions with more favorable labor conditions, enhancing operational efficiency for Amazon.
In total, the layoffs in Spain are projected to impact around 920 workers, divided between the Amazon Spain Services in Barcelona (791) and Amazon Digital Spain in Madrid (129).
Corporate Context: Amazon’s Financial Health
Despite the layoffs, Amazon’s financial performance raises questions about the necessity of these job cuts. The company reported a net profit of $21.2 billion for Q3 of 2025, signifying a 38.2% increase year-over-year. The Spanish Labor Ministry has criticized the layoffs, pointing out this considerable profit while executing cuts on the workforce.
Amazon’s Position in the Negotiation
In statements provided by Amazon representatives, the company expressed satisfaction with the negotiation outcomes, emphasizing their commitment to fair treatment of employees during this restructuring phase. They acknowledged the balancing act required to meet operational needs while respecting labor rights.
“Our agreement exceeds legal requirements, demonstrating our dedication to both employee rights and the agility of our operations,” Amazon concluded. The company maintains that Spain is vital to its operations, continuing to employ over 28,000 people across the country.
Conclusion
The Amazon layoffs in Barcelona and Madrid reveal a complex intersection of corporate strategy, employee welfare, and economic performance. As automation continues to change the landscape of work, the implications for employees and the communities they serve will remain a crucial topic for discussion.