Auchan has announced to the social and economic committees (the new form of works councils) of three entities of the group, a draft voluntary redundancy plan that aims to cut 677 positions. This concerns the 'head office' and 'product' functions of Auchan Retail and of Auchan Retail France as well as positions within the French sales organisation housed in another entity.
The management specifies that 135 new positions will be created in the new business lines of data management and digital, as well as in the design of own brand products. Therefore, the workforce will be reduced by 517 positions. Auchan has lost nearly €1 billion in 2018, due to complications realted to the sale of its Italian subsidiary.
French stores are not affected. But 21 have already been put up for sale. Greater autonomy must be given to store managers and department heads, who will have to welcome a local and responsible assortment in their outlets. Spaces taken from non-food departments could be able to accommodate local producers. The current management promises strong support measures for employees who choose to leave.
Several reorganisations have already been recorded in the ERM database : the group had announced 462 job cut and780 job creations in 2017; 800 job cuts and 500 job creations in 2014 and 1,600 job cuts and 3,200 job creations in 2012.