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SEAT to cut workforce by 10%

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SEAT to cut workforce by 10%

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Spanish carmaker SEAT has said it is going to cut its workforce by around 10% in the next two years. Currently it employs about 15,000 people. The company, which is owned by Volkswagen, said there will be no dismissals and the cuts will be achieved by early retirements and voluntary redundancy payouts of up to 140,000 euros.

It recently announced smaller losses for last year – 49.1 million euros compared with 62.5 million in 2005, sales increased last year, but only slightly to 430,000. Turnover was also up, at 5.54 billion euros from 5.27 billion in 2005.

SEAT spokesman Ignacio Sanchez Leon said there is a connection between the jobs cuts and investing in a new model: “The management’s decision is that is the only condition to building the new model here at the Martorell plant.”

SEAT, which has indicated it wants to return to profit next year, said it is currently negotiating with the unions at its five factories over the job cuts.