French department store chain Auchan presented its employee representatives on Tuesday with a draft social plan that threatens a total of 2,389 jobs in France, including the closure of around ten stores, in an attempt to revive its activities after disappointing financial results in recent years.
The brand, which is part of the Mulliez group, has presented its employee representatives, who number more than 53,000 in France, with a plan designed to safeguard jobs.
Auchan intends to reduce the size of its operations at various levels, starting with the grouping of support functions between different entities at its head office, which could affect 784 jobs.
The plan also provides for a "more flexible and independent" organisation of the store network, which could affect 915 jobs, as well as the closure of three direct home delivery warehouses in Paris, Lille and Lyon, which would lead to the loss of 224 jobs.
Finally, the social plan provides for the closure of around ten stores "that are suffering losses that are too great to be resolved in the short term", according to a source close to the administration, affecting 466 jobs.
The French Minister for the Economy, Antoine Armand, announced his intention to "ensure" that "the priority of this transformation (at Auchan) is really the issue of employment".
The total number of jobs threatened by this social plan is 2,389. The management hopes to limit the impact of the redundancies through support for the employees concerned, redeployment and a voluntary departure plan.
The plan also provides for the creation of 114 jobs in the online stores ("Drive") and 205 jobs in support functions.
For many years, Auchan was considered one of the best supermarket chains in terms of employee welfare, but it has had a series of bad economic years and its holding company, Elo Groupe, announced in July a net loss of almost one billion euros in the first half of 2024.
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