Around 5,000 rental cars in Mallorca: When a fleet giant cuts 42 jobs — a reality check

Around 5,000 rental cars in Mallorca: When a fleet giant cuts 42 jobs — a reality check

How stable is the island economy when an airport fleet is downsized?

At Terminal B of the airport, at eight in the morning, one suitcase after another rolls across the conveyor belt, taxis stop, retirees with sun hats look for their luggage — and behind the counters seasonal staff usually work, responding to enquiries, handing over keys and dealing with damage. It is in exactly this environment that OK Mobility has now completed its redundancy procedure (ERE) on Mallorca. Forty-two jobs on the island are being cut — originally 70 dismissals were planned, but these were mitigated by internal transfers. The company calls the measure part of the "OK Forward" programme.

The bare numbers are contradictory: according to the company, the group employed around 800 people worldwide in 2024, about 270 of them on Mallorca, and generated more than EUR 550 million in revenue. At the same time, the group reported a loss of about EUR 29 million for 2024. On Mallorca, OK Mobility operates around 5,000 vehicles in the high season, many stationed at the airport. One business segment is the resale of young used cars: according to the company, more than 25,000 vehicles were sold in 15 countries.

Key question: what burdens does the local workforce carry when an internationally operating provider streamlines its structure? The severance arrangement — 25 days per year of service, up to a maximum of twelve months' salary — has been agreed. Whether that is economically sufficient for those affected depends on individual factors: contract type (seasonal or permanent), rental costs, family obligations. For many seasonal workers living on the island, the periods between bookings are often financially tight.

Critical analysis: the business model of many providers on Mallorca lives from seasonality and fleet fluctuations. Vehicles are deployed for the summer and then transferred into a company-owned pre-owned programme and sold — a mechanism that creates liquidity and revenue, but also causes large swings in staffing needs. In loss years and cost-cutting programmes the knife often hits the operational levels: rental staff, cleaning teams, logistics and damage handling. The restructuring aims at profitability but brings short-term social costs.

What has been missing so far in the public debate is transparency about the type of positions affected. Were they primarily seasonal workers on fixed-term contracts, or full-time employees with steady incomes? What concrete support do the city, consultants or employment agencies offer? And: what are the recruitment plans for the coming season — will there be rehirings or retraining for sales and used-car management? These questions are often absent from published reports.

An everyday scene that repeats on Mallorca: a young woman from Palma who worked several summers as a check-in agent now faces open applications. She knows the business, speaks English, German and Spanish, but the jobs are fragmented. In cafés on Avinguda Joan Miró people talk about next steps — applications, further training, the worry about rent. Such conversations show more than numbers: they are households and plans that are affected.

Concrete solutions: first, companies should present mandatory transparency lists during restructurings — which functions are being cut, which are being reassigned internally? Second, employers and local employment agencies could set up binding retraining and placement programmes that specifically move employees into the pre-owned sales business or service offers. Third, a "seasonal social fund" could be envisaged, financed proportionally by rental car companies during the high season, to cushion transition periods for seasonal workers. Fourth, municipal authorities should facilitate access to short-time work models, training subsidies and temporary employment programmes.

Another point: sector-specific tax or subsidy incentives could be tied to conditions, for example to job protection across seasonal boundaries or to investments in local retraining. Such instruments would, however, need to be carefully designed so they do not become loopholes for mere cost-cutting.

Conclusion: the decision of a fleet operator to cut 42 jobs on Mallorca is not an isolated event. It reflects a business model that is heavily dependent on seasonality and the trade in young used cars. The island economy can absorb such shocks because it is resilient — but that resilience also depends on the people who work locally. If the public discourse only counts the numbers, the realities of employees' lives disappear. That is why more transparency from companies, coordinated support from authorities and practical transition models are needed so that the next holiday season is stable not only for fleet figures but also for the people on Mallorca.