Zara Parent Co. Considers Laying off 25,000 Employees

Zara's parent company Industria de Diseno Textil (Inditex) is considering laying off 25 thousand employees temporarily, in case of the continuation of stores closure in Spain due to the spread of the  coronavirus pandemic.

An official in the company was quoted on Friday as saying that Inditex, which owns the trademark Zara and Massimo Dutti may dispense with thousands of workers in Spain if the state of emergency is extended after April 15.

He added that employees in logistics, central services and manufacturing operations will not be affected by the possible decision.

"Most of the company's administrative employees currently work from home, while logistics personnel work less in compliance with safety recommendations regarding maintaining a distance between workers," he told Reuters.

Last Saturday, Spain declared a 15-day state of emergency nationwide to combat the coronavirus, and ordered bars, restaurants and most shops to close, in addition to restricting transportation.

India's Inditex stores, including the major Zara chain, have since closed, but have continued to pay the salaries of their employees.

Mean time, the Spanish giant witnessed an increase in the its stock price in the outbreak of the deadly virus, yet, the share price lost more than 37.5% in mid March, to recover today by 4% to 21.58 euros.

It is noteworthy that Inditex is the biggest fashion company, operating over 7,200 stores in 93 markets worldwide. The company's flagship store is Zara, and it owns the chains  of Zara Home, Massimo Dutti, Bershka, Oysho, Pull and Bear, Straparius and Uterqüe.