The Valencian government has approved a decree relating to the restructuring of public companies which will see 3,000 employees being laid off, about 40% of the total workforce.
The plan will see as many as 46 municipal companies disappear and the lay offs (ERE) are likely to start in November. The cost of this measure is estimated at €85 to €100 million, roughly the same amount as the savings to be made due to the staff reductions.
In total the Valencian government is looking to save in the region of €300 million as a result of the restructuring and is not ruling out further measures at a later date.