Gran Canaria NGO Lays Off 47 Employees Due to Economic Issues

The organization, which managed a center for minors, faces a severe financial crisis after the suspension of its main activity.

Generic image of financial documents and a calculator, symbolizing economic problems.
IA

Generic image of financial documents and a calculator, symbolizing economic problems.

An NGO based in Las Palmas de Gran Canaria has implemented a Collective Dismissal Procedure (ERE) affecting 47 workers, as a result of a severe economic crisis and the suspension of its main activity.

The organization, which operated the Demena Tagoror center, has seen its activities suspended since August 2024, leading to a drastic reduction in its income. This collective layoff became effective this week, 30 days after the initial communication to labor authorities and 37 days after informing employee representatives.

"Payment is not possible at this time due to insufficient treasury, with the entity committing to payment as soon as the economic situation allows."

a spokesperson for the entity
The suspension of operations at the Demena Tagoror center, which housed over 100 unaccompanied minors, was ordered by the Consejería de Infancia del Gobierno de Canarias on August 12, 2024. This decision was based on an ongoing criminal procedure at the Investigating Court number 3 of Las Palmas de Gran Canaria, thereby eliminating the NGO's primary source of income, which accounted for over 90% of its funding.
Following the closure of the center, located in El Fondillo, Tafira, the organization initially requested a Temporary Employment Regulation File (ERTE) due to force majeure, which was denied. Subsequently, an ERTE for economic, technical, and organizational reasons was approved, under which it has remained until now.
The dismissal letter details significant economic losses, amounting to 315,502.88 euros in the 2025 fiscal year, attributed to a severe imbalance between income and expenses, particularly personnel costs. Forecasts for 2026 are equally unfavorable, with losses increasing by over 90,000 euros in the first three months.
Despite this situation, the NGO will not completely cease its activities, maintaining other social projects operational from its offices at the Evangelical Church of Las Palmas. The entity continues to receive funding, including subsidies from the Cabildo de Gran Canaria. On March 6, the Consejería de Política Social granted it 200,000 euros for social emergency aid in 2025, and on April 17, the Consejería de Presidencia awarded 40,000 euros for the Gran Canaria Solidaria project, aimed at improving the living conditions of vulnerable people.