A domestic virtual training company has announced the second employment regulation dossier (ERE) in a single year, signaling planned workforce reductions. The cut will impact 89 employees from the content creation department, with two-thirds of the team in the video recording segment facing layoffs. The announcement, issued this Monday, outlines a strategic consolidation of the studio operations and a focus on core functions. This document aims to lay out what that means for the company and its people, and what actions workers and managers might consider in this moment of upheaval.
In recent months, Domestica has reorganized its footprint by dissolving its Spanish subsidiary and reorganizing the structure into multiple entities. After closing a 97 million euro funding round last year, and following a high-profile unicorn status marking a value above one billion euros for a US-origin startup, the group has begun staffing reductions. The initial cuts affected the DMSTK SL unit, and now the Estudios de Grabación Digital SL business line is also facing reductions.
Latest filings in the trade registry show losses around 105,437 euros for the two entities in 2021, with further deterioration in subsequent years as demand for online courses dwindled after easing pandemic health restrictions. If the proposed terms hold, the company could drop to 275 workers in Spain, a figure that implies a substantial contraction from current levels. The group has started to wind down its international studio network, closing 11 of 12 video recording studios outside Spain, and concentrating activity in Madrid. This shift underscores a renewed emphasis on a centralized hub and a tighter geographic footprint to support the business strategy.
The workforce is actively reviewing the measures taken by Domestica’s leadership as they consider protest actions, hoping to persuade management to withdraw the filing or modify the plan. In the prior ERE cycle, affected workers received compensation for unfair dismissal based on a standard formula, with a base payment and a linear topping modifier. The current phase adds pressure on both sides to reach a resolution that balances organizational needs with fair treatment of staff and a clear path forward for remaining operations.