The Malaga-based tech company Magnific (formerly Freepik) has concluded the ERE with 100 voluntary departures and a compensation of 45 days per year, well above the initial 30 days.
The Malaga-based tech company Magnific, formerly known as Freepik, has closed the employment regulation file (ERE) it announced a month ago with an agreement affecting 100 workers, all of whom are on voluntary departures. The agreed compensation is 45 days per year of service, capped at 24 monthly payments, significantly higher than the 30 days the company offered at the beginning of negotiations.
Tough negotiations but no forced layoffs
The works council has described the negotiations as "tough", but highlights that any forced layoffs have been avoided. "The agreement reached is, within a scenario that no one wanted, the best closure that could be achieved," union sources stated. The workforce, which has helped turn Magnific into one of the most relevant generative artificial intelligence platforms in Europe, has seen conditions superior to the legal minimum recognized.
In addition to the base compensation, the agreement includes a 4,000 euros gross additional payment per person and a guaranteed minimum of two monthly payments for those who have been with the company for less than a year. These improvements have been key to reaching consensus.
Causes of the ERE and union criticisms
The company, founded 16 years ago by Joaquín Cuenca Abela, justified the ERE on technical, productive, and internal relationship grounds, dismissing economic reasons. In fact, the company celebrated recurring annual revenues of 230 million dollars just months ago. However, Comisiones Obreras has criticized that the alleged reasons were insufficient and that the process reflects a lack of planning in the transition to the new business model.
"It is unacceptable to propose dispensing with a third of the workforce in Spain without a solid motivation and without an objective and verifiable justification," the union denounced. Despite the criticisms, the negotiations focused on minimizing the impact on workers and achieving the best possible conditions.
Impact on workers and the sector
For the affected employees, the compensation of 45 days per year provides a significant cushion, well above the 20 days of objective dismissal. Additionally, the minimum of two monthly payments protects less senior workers, a particularly vulnerable group in such processes. The agreement sets a precedent in the Andalusian tech sector, where EREs are usually negotiated with conditions similar to those of the collective agreement.
The company, which employs around 300 people in Spain, has managed to reduce the number of departures from the initial 111 to 100, all voluntary. This avoids judicial conflict and allows Magnific to focus on its organisational restructuring towards generative artificial intelligence, its new flagship business.
The ERE was presented on June 17 and, after a month of negotiations, has been concluded with an agreement that all parties consider reasonable. Workers who have accepted voluntary departure have a period of 15 days to formalize their exit, according to sources from the works council.
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