Mahle plans 170 layoffs in Spain after asking for overtime
German auto-parts maker Mahle plans to cut 170 jobs in Spain just months after asking staff to work overtime.
Layoffs · Source: Cadena SER
What happened
German auto-parts maker Mahle announced plans to lay off 170 workers at its Motilla del Palancar plant in Spain. This proposed cut represents about 35 percent of the 500 remaining employees at the facility. The company blames the decision on weak demand for electric vehicles. Management claims automakers are delaying investments and canceling vehicle programs.
Workers report that the company recently asked them to work overtime and extend their shifts. Shortly after, management announced the job cuts using an English message displayed on a television screen. Union leaders accuse Mahle of acting in bad faith. They say the company waited exactly 13 months to announce this round of cuts. This timing avoids a clause from the 2025 layoffs that guaranteed better severance pay for any cuts made within a year.
Working conditions at the plant have deteriorated over the past year. Union representatives say the company removed chairs from production lines and denied vacation requests. Workers also endured temperatures over 40 degrees Celsius because broken air conditioning units were not repaired. The CCOO union is now consulting workers on a potential strike. Formal negotiations for the layoffs will run from October 26 to November 29. The regional government has offered mediation and asked the Recovery Plan commissioner to enforce stricter oversight of the company due to the public funds it received.
By the numbers
- 170 — Number of jobs Mahle plans to cut in this round
- 35% — Portion of the current Motilla plant workforce affected
- 466 — Number of workers laid off during the previous cuts in 2025
- 13 months — Time passed since the last layoffs, bypassing a severance protection clause
Why it matters
This situation shows how quickly manufacturing jobs can disappear even when factories seem busy on the floor. Workers who were asked to work extra hours are now facing sudden unemployment. Job seekers in the automotive and electric vehicle sectors should note that production targets are shifting rapidly. Companies are adjusting their workforce sizes based on long-term forecasts rather than current daily tasks. This disconnect can leave workers caught off guard.
The conflict also highlights the growing risk of offshoring in the European auto industry. Union leaders fear Mahle is slowly moving production capabilities to China. Management reportedly compared the Spanish plant to Chinese factories where workers do not have chairs and face strict vacation limits. This trend could mean fewer stable manufacturing roles in Europe. Local economies that depend on these large factories will face significant challenges as companies relocate to cut costs.
Who this hits
Mahle factory workers
About 170 employees in Spain face losing their jobs in this new round of cuts. The remaining workers face worsening daily conditions, including removed seating and broken air conditioning during extreme heat.
Electric vehicle supply chain workers
Slower demand for electric vehicles is causing auto-parts suppliers to cancel programs and delay investments. Workers across this specific supply chain may see fewer job openings and increased pressure to accept lower standards.
Local Spanish communities
The Motilla del Palancar region relies heavily on this plant for employment. Successive workforce reductions threaten the local economy, especially since the company has not facilitated new industrial projects as promised.
What to do this week
- Track broad industry demand signals rather than relying just on daily factory output to evaluate your job security.
- Review your employment contract carefully for severance clauses and note their exact expiration dates.
- Keep your skills updated and flexible if you work in a sector facing delayed investments, such as electric vehicles.
- Document any sudden changes in your daily working conditions, as these can sometimes signal larger corporate shifts.
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My take
It is incredibly frustrating to see a company ask for overtime right before announcing mass layoffs. This is a harsh reminder that a busy shift does not equal a safe job. I always tell job seekers to keep their resumes ready and stay aware of market trends, even if their current employer seems to have plenty of work.