Inditex considers 25,000 temporary layoffs in Spain

MADRID (Reuters) – Inditex could temporarily lay off all 25,000 of its shop staff in Spain if the country’s state of emergency continues beyond April 15, a company official said on Friday, a sign of how the economic damage of the coronavirus outbreak could worsen.

Employees in logistics, central services and manufacturing operations would not be affected, the official, who declined to be named, said. Inditex’s headquarters in Arteixo, northern Spain, are the nerve center of the fashion group’s operations.

Spain declared a nationwide 15-day state of emergency to fight the coronavirus on Saturday, ordering bars, restaurants and most shops to close, as well as restricting transport.

Inditex’s stores in the country, including its flagship Zara chain, have been closed since then, although it has continued to pay their employees’ salaries.

Carmarkers Seat, Volkswagen (DE:) and Renault (PA:), as well as fast-food retailer Burger King, are among big companies that have already temporarily laid off thousands of workers in Spain. Airline Iberia said on Thursday it would lay off up to 90% of its air-bound staff as planes are grounded.

Inditex’s (MC:) home market has by far the largest store network of the group, accounting for about a sixth of its global sales.

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