Consolidation at Abanca as the main shareholder underpins Nueva Pescanova’s path after a turbulent period. In 2020, the company approved a new strategic plan, Rumbo al valor, aimed at absorbing bankruptcy impacts and shaping the future of Galicia’s leading fishing enterprise. The plan, set to be realized by 2024, rests on five core pillars. The company seeks to deliver diverse seafood products to high-value markets, increase consumer value through added benefits, and boost productivity, efficiency, and sustainability across the supply chain. The strategy also focuses on transforming and simplifying the organization to realize concrete change. Growth can be achieved organically, or through acquisitions or alliances. A potential alliance with Pesquera Veraz, an Argentine firm specializing in hake and shrimp, illustrated this approach. Veraz operates nine vessels, three processing facilities, and a canning plant. Currency fluctuations and inflation in Argentina, however, limited the operation’s profitability for Nueva Pescanova despite its strong market position.
Following pandemic-related pressure, rising inflation compelled Nueva Pescanova to realign its direction. Elevated costs for feed, fuel, oil, additives, logistics, energy, and labor pressured margins, while shifting consumer patterns affected demand for key products such as vannamei shrimp and prawns. Internally, aquaculture operations in Nicaragua faced challenges that increased costs and reduced output. The combined effect weakened turnover by 2% to 1 billion 74 million euros, exacerbated by the euro strengthening against the dollar, pulling the group into a loss. The resulting damage exceeded 53 million euros.
The group disclosed the start of a sale process on the preceding Wednesday, without highlighting Abanca’s negotiations with Canadian investor Cooke for selling an 80% stake. Talks with unions continued under an Employment Regulation File (ERE) framework, affecting both back-office staff at the Chapela headquarters and Madrid offices. About one hundred workers would be impacted, with more than 300 involved in these services through the Faro de Vigo outlet of the Prensa Ibérica group. The company defended the ERE as necessary to adapt to a challenging global environment and to safeguard long-term viability.
Nueva Pescanova presents an ERE for one hundred employees
The measure marks a further step in contingency planning to trim costs amid inflation and higher interest rates, a combination that has been central to Nueva Pescanova’s debt management. The latest figures show the finance arm recording 209.6 million euros in debt with an average annual interest rate of 4.86%, up from 3.9% in 2022.
TheChapela back-office works council met urgently to outline a strategy that prioritizes reducing the number of affected workers while maintaining fair conditions. Voluntary retirement options, incentive leaves, and reduced hours were proposed to ease the transition. Worker representatives voiced strong criticisms, arguing that the company had lost direction and that the plan might not secure a sustainable future unless accompanied by broader reforms. The sentiment among staff was that the ERE alone would not reverse the course.
813 people were laid off, a 135% increase from 2022
The planned reductions at the Chapela and Madrid sites, while ensuring production centers remain intact, reflect broader restructuring that began last year. Nueva Pescanova’s global workforce averaged 11,532 employees, down 304 from the prior year. End-of-year data suggested more extensive adjustments. The workforce declined from 11,134 workers on March 31, 2022, to 10,056 on March 31 of the current year, a drop of 1,078 positions overall.
Non-financial disclosures show 813 layoffs, up 135% versus the previous year. The majority occurred in Guatemala and Nicaragua, with 575 and 353 workers let go, respectively. Reductions were also reported in eight other countries, notably Namibia (171), Ecuador (149), Argentina (31), Spain (26), and France (17). At the same time, the workforce grew in Mozambique by 221 and in Peru by 26.
Among the exits, 953 were deemed uncertain and 125 led to final dismissals. Nueva Pescanova reported the loss of seven managers, eleven middle managers, sixteen technicians, and 1,047 administrative and operational staff.