Domestika prepares an ERE to lay off 89 people in Spain

Domestika plans to lay off 89 workers in Spain.

Oliver Thansan
Oliver Thansan
31 March 2023 Friday 10:30
232 Reads
Domestika prepares an ERE to lay off 89 people in Spain

Domestika plans to lay off 89 workers in Spain. The American company is negotiating an ERE with the workers of its Madrid subsidiary Dmstk SL, which remotely employs 198 people in this country. "The cut affects 45% of the staff of this company," sources from the workers' representatives assure this newspaper.

The reasons used by the American company, specialized in online training courses, are economic, organizational and production. "The current macroeconomic context is causing cuts in the entire technology sector, but we are also directly affected by the automation of the processes of the new artificial intelligence applications, such as ChatGPT," lamented these sources, advised by the Col·lectiu Ronda law firm.

Of the 89 workers affected, 22 are linked to translation services, a task that from now on will be automated by machine translation applications. In addition, 9 employees specialized in marketing content creation will lose their job because their task will also be automated by generative Artificial Intelligence. "

Two people will remain in this team who will supervise the texts generated by the robot", assure these sources, who are in full negotiations on the conditions of the departures. For now, the company offers compensation of 25 days per year worked and has proposed relocating to 3 workers in another company of the company.

The same sources assure that the other subsidiary of the company in Spain, specialized in content production, will not be affected by the cuts. Last year, Domestika already carried out a hundred layoffs between both subsidiaries. In that same year, he raised more than 100 million dollars, about 92 million euros, in an investment round. The company's global turnover is about 60 million dollars, about 55 million euros.