EMCC European Monitoring Centre on Change

FNAC

Company/Organisation:
FNAC

Geographic Location

Country: France

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47.6 - Retail sale of cultural and recreation goods in specialised stores
Number Employed: 1500
Group: PPR

Employment Effects

Announcement Date: 13-01-2012
Planned Job Reductions min: 310
Planned Job Reductions max: 310
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-02-2012
Foreseen End Date: 31-12-2012
Other Job Reduction Measures: 310

Additional Information

Cultural and entertainment goods retailer FNAC announced 310 job cuts in France out of 1,500. The job cuts are reported to affect mainly support functions at headquarters and in stores. This is part of a global restructuring plan involving 510 redundancies in the frame of a €80 million cost-saving plan in response to a decrease in sales and operating profits (see here).

Outside France, 200 jobs will be eliminated through non-replacement. The company intends to implement the remainder of the job cuts through voluntary departures. Sales staff and fnac.com employees will not be affected by the job cuts.The restructuring will include other measures including a freeze on recruitment and reduction of general charges through reviewing technical service contracts and leases.

FNAC, a subsidiary of the French PPR luxury group, employs more than 17,000 people and operated 158 stores in the end of 2011 of which 85 in France and 73 worldwide (Belgium, Brazil, Spain, Italy, Portugal, Switzerland and Morocco).

UPDATE, 29/03/2012 - Staff representatives have taken the firm to court for failing to supply clear information on the reorganisation of support functions and the effect of the restructuring on the remaining staff. In a recent hearing, the High Court postponed its verdict on the downsizing plan until 3 May 2012.