the distributor Auchan is preparing to announce a large-scale layoff plan

the distributor Auchan is preparing to announce a large scale layoff

In France, rumors of massive layoffs are spreading at the food distributor Auchan. According to the media La Lettre, nearly 2,300 positions would be threatened by a social plan. Management is expected to make the announcement on Tuesday, November 5, to staff representatives, who have more than 50,000 employees. This situation is the result of several difficult years and above all the group’s loss of international momentum.

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Staff representatives from several entities of the northern group were summoned on Tuesday at 9:00 a.m. to CSEs (social and economic committee) in the Lille region, for a “ update on the company’s situation and its projects », and the unions fear bad news on the employment front, according to this source.

According to a source close to the matter, around 2,300 jobs could be threatened by social plans carried out at different levels of the company. Part of the jobs would be threatened in support functions within the various headquarters, another part in the stores.

Asked by AFP, Auchan management did not wish to comment.

Also readAuchan announces the elimination of 517 jobs

I know we’re in difficult economic times, but to have figures like that… », Reacted to AFP Fabien Alliata, CFDT central services union delegate. However, he remained cautious to the extent that “ there is no official information » before the CSE held on Tuesday.

We have a lot of signals that alarm us, but it’s hard to go further » in the comment, pending official information, also declared Franck Martinaud Retail union representative, FO. However, he observed that “ If it’s that number, it’s huge. »

A billion euros loss over the first six months of 2024 via its holding company ELO

In fifth position on the French distribution market, Auchan is struggling to keep its head above water. Its holding company ELO lost 1 billion euros over the first six months of 2024 and its sales fell by almost 2% in 2023.

For years, the group could count on its international activities to absorb French losses. But after leaving theItaly in 2019 and China the following year, Auchan is preparing to abandon its main lifeline: the Russia.

Also readWar in Ukraine: Auchan stores remain in Russia, kyiv calls for boycott

The most profitable subsidiary internationally, it represents 10% of Auchan’s turnover and has nearly 30,000 employees. The war in Ukraine undermined the activities of the distributor, which saw its turnover decline by 5% last year. According to press information, Auchan is in the process of reselling its stores there.

A departure that he would pay at a high price: Moscow is forcing companies leaving the country to sell their businesses at half price, a sort of exit tax put in place in response to Western sanctions.

Also readAuchan’s Russian subsidiary targeted by investigation for suspicion of corruption

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