Bimbo closes Alicante plant, leaving over 100 workers jobless

Bimbo shuts its Verger facility in Spain, affecting 100+ staff amid record employment stats and other corporate closures.

English · Original discussion in Spanish · Published

Bimbo closes Alicante plant, leaving over 100 workers jobless
Bimbo closes Verger plant, leaving over 100 employees unemployed

The closure of Bimbo's plant in Verger, Alicante, affecting more than 100 employees, has cast a shadow over the official narrative of record employment. The news, published by El País, trinc recent shutdowns by Danone in Parets del Vallès and adjustments at Grifols and other major companies within just a few days. This timing has fueled suspicions: some see a coordinated offshoring strategy, while others attribute it to simple market corrections. What is undeniable is that these layoffs occur even as the EPA (Spain's labor force survey) continues to report historic highs in social security contributors.

A trickle of closures that doesn't match employment records

Bimbo's Alicante plant is not an isolated case. During the same week, Danone announced the closure of its Parets del Vallès site—eliminating 90 jobs after more than 50 years of operation—and Grifols implemented workforce adjustments. This coincidence has raised alarms among observers of the real economy: "How can we be at record employment levels when Bimbo and Danone are closing? They haven't shut down plants in their lives," one participant summarized. The contradiction between macroeconomic data and the reality on the ground in industrial parks is the core of the discontent.

Official arguments point to rising costs: energy, plastic taxes, recycling requirements, and raw materials. "Plastic tax, higher input costs, energy, recycling... That's all. Look at companies like PepsiCo," noted one analysis. However, this explanation does not convince everyone. Others point to declining consumption: "This is what happens when people don't have a penny in their pockets and CANNOT CONSUME. Everything closes, everything sinks."

Why is Bimbo closing its Alicante plant?

Reasons circulating in the industry suggest a combination of factors. On one hand, the soaring cost of energy and inputs, exacerbated by the plastic tax and new packaging recycling mandates. On the other, changing consumer habits, with shoppers turning to private labels to cope with inflation. "Consumers are changing habits or opting for cheaper brands to survive inflation. Olive oil, Danone, Bimbo... it's logical if you raise food prices by 100%," one analysis pointed out.

The paradox is that Bimbo has been accused of monopolistic practices in Spain: buying other bakeries and eliminating them to remove alternatives. "Enough of that crappy Bimbo bread, the worst quality sliced bread on the market," one participant remarked. The Verger closure leaves more than 100 families in limbo and eliminates competition in the area.

Job fragmentation: Contributors without real work

One of the most incisive analyses in the debate questions the employment figures. "Work distribution, job fragmentation, that's what's happening, plus accounting tricks to count employees and unemployed. Those over 52 receiving subsidies also contribute without working. Of those 21 million contributors, we need to see who actually works 40 hours," argued a participant. The criticism suggests that the record number of contributors hides a reality of precarious and fragmented employment.

This argument is reinforced by the context of increases in the SMI (minimum wage) and reduced working hours in some sectors. While the government celebrates affiliation data, companies are adjusting staff through closures or hour reductions. The lingering question is how many of these contributors are truly active and how many merely inflate statistics without real activity.

Consumption slumps as private labels gain ground

The backdrop to Bimbo's closure is falling consumption. "Apparently, consumers are changing habits or turning to cheaper brands to survive inflation. Olive oil, Danone, Bimbo... it's logical if you raise food products by 100%. People have a bad habit of wanting to eat every day," one participant joked ironically. Rising food prices have led many families to drop premium brands in favor of store brands.

This shift directly hits manufacturers like Bimbo, whose margins are shrinking. The consequence is plant closures and production transfers to other regions, as another participant noted: "No problem, they're moving production to Barcelona." The cycle closes: less consumption, less production, fewer jobs.

The future: More closures and adjustments

The prevailing feeling is that this is only the beginning. "We should start a betting pool to guess which company closes next," one participant joked. Others point directly to the department store sector: "Here, we've been betting on El Corte Inglés since before 2010." The list of candidates includes any company with high energy costs and tight margins.

Meanwhile, the contradiction between macroeconomic data and the reality in industrial parks remains unresolved. "It's the market, friends," one participant summarized sarcastically. The most repeated prediction is that closures will continue and employment will remain fragmented. No one knows how many of those record-breaking contributors will still be counted a year from now.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (145 replies).

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