Spanish engineering and renewable energy group Abengoa SA (BME:ABG) plans to make several of its workers redundant as it braces for the economic impact of the coronavirus crisis on its business.
The company on Monday said it already started suspending contracts in Spain under a temporary layoff procedure known in the country as ERTE, and initiated a similar process in other countries. The move will affect some 30% of the workforce at home and around 15% abroad.
Abengoa highlighted that these measures are extraordinary and only temporary, assuring that they will not be applied wholesale. Employees marked for exit will be selected by the duties they perform as the company adapts its workforce structure to the new situation and current workload.
In addition, the board of directors and the management team will cut their remuneration by 20% and suspend the payment of bonuses from 2018 until the state of emergency in Spain is lifted. Bonuses earned in 2019 have already been cancelled, Abengoa said.
The company added that most of its projects are currently ongoing, but the COVID-19 situation is changing rapidly in different countries due to the shortage of supplies, decisions taken by Abengoa clients as well as those made by local governments.
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