Iberia could cut up to 996 jobs as it restructures its workforce

According to ReutersThe proposed cuts include 753 staff on the ground, 106 pilots, cabin crew, and other ground staff. El País According to reports, the total package represents approximately 9.4% Iberia’s staff. This is based on an employee count of 10,568.

A plan of voluntary action, but it is a large one

The airline has described the process in terms of a voluntary ERE rather than a mandatory mass layoff. Cadena SER reported that formal negotiations have begun with unions and that the Labour Directorate of the Madrid Regional Government has been notified.

This distinction is important, but does not alter the magnitude of what Iberia proposes. Iberia plans to cut nearly 1,000 jobs across the board, including the flight crew, the cabin staff, and the support team on the ground.

Why Iberia is doing what it says

The company says the move is aimed at modernising its workforce, adapting the job profiles to the changing needs and lowering average staff age. El País Iberia says that 40 percent of their employees are above 50 years old.

This explanation will be scrutinised closely, as the restructuring occurs at a time when Iberia also presents itself as a carrier in expansion mode. El País reports that the company is still planning to hire around 1,000 employees a year as part of its 2025–2030 strategy, which includes investment and projected annual production growth of between 3% and 5%.

Iberia, in other words is not shrinking as we know it. It is trying reshape its workforce and the locations where it works.

Strong profits, difficult optics

This makes the political announcement even more awkward. El País says Iberia posted a record 2025 operating result of €1.313 billion, while also pushing ahead with a €6 billion investment plan, much of it linked to fleet renewal and long-haul expansion.

This will likely raise questions for workers and unions about the need for such a major adjustment. If a company is posting good results and preparing to let nearly 1,000 employees go, it will be under pressure to explain if this is about adapting or just a more efficient staffing plan.

Restructuring

Reuters claims that Iberia has set up a timetable to hold talks with the workers’ representatives. This means that the next phase of negotiations will be shaped by discussions over conditions, adoption and how the company interprets “voluntary”.

Spain’s aviation sector has experienced repeated cycles of restructuring in the last decade. However, this latest move falls into a new context. Iberia’s profitability is high, travel demand has rebounded, and the airline is positioning itself to be a major player in IAG for future growth. It is therefore less of a story of crisis, but rather about how Iberia wants to rebuild for the future.

Resetting the workforce has wider implications

Iberia’s job-cutting plan isn’t just another story about labour. It’s also a sign that large companies in Spain try to balance growth, automation, cost-control, and demographic changes at the same.

Negotiations will determine whether this is seen a a pragmatic reset, or as a profitable airline cutting deeply while still talking of growth. It is expected to be one of the most important business stories in Spain for the next few days.