Could I be made redundant through a ERE because of artificial intelligence?

You can be dismissed for the reasons regulated in the Workers’ Statute for collective redundancy procedures, and this can occur even in a company that is making a profit. In this article, we analyse this issue in depth as specialist labour lawyers.

The controversy already exists in the labour market: companies with profits and no decline in turnover are considering carrying out an ERE as a consequence of AI. It is clear that the current state of technological development is making us live through a period of change in businesses, where the automation of tasks can put jobs at risk.

According to data from the Ministry of Labour, collective redundancy procedures increased by an average of 6.7% between January and February 2026 compared with the same period in 2025. Consultancy firm Capgemini announced an ERE due to the acceleration of technological change and the need to adapt the organisation to the new environment. Inetum has followed a similar path with a 5% reduction in its workforce (more than 400 employees). The same has happened with Nestlé, Telefónica and Amazon. At present, the highest concentration of collective redundancy procedures is occurring in customer service, technology and consultancy.

The first thing we need to analyse in order to understand this issue is the regulation of the collective redundancy procedure or ERE under the Workers’ Statute.

What are the grounds for a collective redundancy procedure (ERE)?

According to the Workers’ Statute, a collective redundancy occurs when a company terminates the employment contracts of a certain number of employees for economic, technical, organisational or production-related reasons.

Economic grounds arise when the company’s results reveal a negative economic situation, which may be reflected in current or anticipated losses of income or a decline in sales. A decline is considered persistent when it affects three consecutive quarters and the level of income is lower than that recorded in the same quarter of the previous year. However, economic grounds may also exist where there is a risk of future loss of income that could affect the stability of the business.

For example, Logistics Ltd has suffered a loss of income over the last three quarters and, compared with the same period of the previous year, its losses amount to 40% of its turnover. This is due to the loss of its main client, so the company is considering implementing a collective redundancy procedure.

Technical grounds arise when there are changes to the means or tools of production. For example, a company manufacturing vehicle components has automated its production process, reducing the number of employees required in the factory, and therefore proposes a collective redundancy procedure to reduce its workforce.

In the case of organisational grounds, changes occur in working systems and methods or in the way production is organised. For example, a new software system is introduced that will digitally and automatically perform manual tasks previously carried out by several employees, such as organising and classifying information, handling customer enquiries, and so on.

Finally, production-related grounds arise when there are changes in demand for the products or services offered by the company in the market. For example, a company manufactures diesel engines for passenger cars and has seen demand decline because buyers prefer electric vehicles. This directly affects its workforce, as the reduction in demand has led to lower revenue.

All of the above means that a company does not necessarily have to be experiencing financial difficulties in order to justify a collective redundancy procedure.

How does a company justify a collective redundancy procedure due to AI?

Technology companies are currently carrying out collective redundancy procedures, but they do not state that the cause is AI. Instead, they refer to the need for technological transformation in response to market changes.

In any case, a collective redundancy procedure cannot be justified arbitrarily. A company wishing to initiate one must prepare an explanatory report setting out the grounds and provide accounting documents or other evidence relating to the reasons invoked, the number of people affected, and the selection criteria. In addition, prior consultation procedures must be carried out.

However, not everything is acceptable. For example, if a company claims that the reason for the collective redundancy procedure is its technological transformation, it must explain how that transformation will be implemented, which functions will be eliminated or reduced, which processes will be automated, and ultimately why these measures are being used instead of other less burdensome alternatives for employees.

The challenges of collective redundancy procedures for businesses

The use of collective redundancy procedures as a consequence of AI, in addition to generating controversy, will have to address several challenges, including the following:

• The use of AI itself to select the individuals who will be included in the collective redundancy procedure may lead to discrimination due to biases arising from its training, making transparency in the process essential.
• It is not enough for a company merely to intend to implement a particular AI-based innovation; there must be actual implementation.
• The company must clearly justify the grounds for the collective redundancy procedure and demonstrate that they fall within one of the categories regulated by the Workers’ Statute.

In all controversial cases, judicial intervention will be essential in determining whether the collective redundancy procedure has a clear justification.

Can a profitable company apply for a collective redundancy procedure?

Yes, but it cannot justify the procedure solely on the basis of using AI. It must demonstrate that the grounds for the collective redundancy procedure fall within one of the technical, organisational or production-related reasons regulated by the Workers’ Statute.

Loss of income must be demonstrated in cases where the grounds for the collective redundancy procedure are economic in nature.

As a result of all the above, a collective redundancy procedure due to the use of AI is not always possible. There must be a genuine and legally recognised reason to justify the dismissals, and this reason must be proven.

If your company is considering implementing a collective redundancy procedure due to AI or for any other reason, and you are unsure of your rights, contact us so that we can advise you.