EMCC European Monitoring Centre on Change

REAL, MediaMarkt, Saturn, Gaeria Kaufhof, Cash&Carry

Company/Organisation:
REAL, MediaMarkt, Saturn, Gaeria Kaufhof, Cash&Carry

Geographic Location

Country: Germany
Location of affected unit(s): Rostock, Berlin, Halle

Company

Sector: Retail
Wholesale and retail trade; repair of motor vehicles and motorcycles
47 - Retail trade, except of motor vehicles and motorcycles
Group: Metro Group

Employment Effects

Announcement Date: 20-01-2009
Planned Job Reductions min: 4000
Planned Job Reductions max: 4000
Type of Restructuring: Internal restructuring
Employment Effect Start: 01-01-2009
Foreseen End Date: 31-12-2012

Additional Information

German retail and wholesale giant Metro Group announced on 20 January 2009 that it will cut 15,000 jobs (5% of its global workforce) over the next three years; 4,000 job losses will occur in Germany. In June 2010, the company announced that Berlin, Rostock and Halle would be the targeted locations affected by its restructuring program.

The group hopes to save EUR 1.5 billion by reducing costs and increasing productivity. about 4,000 jobs will be cut in Germany at REAL, Media Markt, Saturn, Galeria Kaufhof and the wholesaler Cash & Carry.

Metro said the job cuts were part of a restructuring that would move functions of its purchasing and logistics units to its four central divisions (Cash&Carry, Media Markt/Saturn, Real and Galeria Kaufhof) in order to allow them more operational independence. Retailer REAL shall close 27 of its sites till 2010. The retail subsidiary Adler will be sold and IBM will take over the IT-service division of Media Markt/Saturn.

Financial Times quotes chair Cordes saying that Metro is affected by the declining purchasing power of private consumers; but the newspaper notes that Metro Group is doing better than most competitors. Metro shares jumped by 7% when the job cuts were announced.