EMCC European Monitoring Centre on Change

Indra sistemas

Company/Organisation:
Indra sistemas

Geographic Location

Country: Spain
Location of affected unit(s): mainly Madrid

Company

Sector: Information / communication
IT and other information services
62 - Computer programming, consultancy and related activities
Group: Indra

Employment Effects

Announcement Date: 01-05-2015
Planned Job Reductions min: 1750
Planned Job Reductions max: 1750
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-09-2015
Foreseen End Date: 01-12-2016

Additional Information

Spanish IT firm, Indra, is planning to dismiss 2,000 workers in Spain (more than 10%% of its workforce in the country) at Indra Sistemas, the parent company of Indra. 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 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.