Struggling Seat has agreed with unions to eliminate 1,600 jobs.


According to dpa-AFX, SEAT reached an agreement with unions in Barcelona on Wednesday (4 April).


In a statement e-mailed to Bloomberg, Erich Schmitt, Seat’s chief executive, said that the agreement, “makes it possible to lay the foundations for the future of Seat” and “helps us to avoid more drastic measures.”


Seat announced last month that it was negotiating with unions to cut jobs.


Hurt by slumping sales and cut-throat competition, Seat laid off 645 workers from its key Martorell factory in 2005. It has since re-hired approximately 520.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Seat posted a loss of EUR49.1m ($US64.3m) last year and aims to return to profit in 2008.


The company said in March it plans to invest EUR450m annually in coming years to develop new models, including a sedan and a small sport-utility vehicle.


According to Bloomberg, Seat will offer early retirement, severance packages and long-term leaves of absence to achieve workforce reductions.

Just Auto Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Auto Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now