Job Cuts Across Europe: Auchan and Schaeffler AG Announce Redundancies
Across Europe, numerous sectors are grappling with significant job losses, and the French grocery giant Auchan has recently joined the ranks of companies announcing plans for redundancies. Staff representatives have been called to meetings with management, revealing that a staggering 2,389 out of 54,000 jobs in France are at risk. The company is set to close a dozen locations, including one supermarket and three hypermarkets, primarily due to ongoing profitability challenges.
Customers of Auchan have expressed their concerns, with one shopper noting, “There are often empty shelves.” This sentiment reflects a broader trend as Auchan, once a trailblazer in the hypermarket sector during the 1970s, now finds itself struggling to maintain its market position. The chain, renowned for its expansive product offerings, is pivoting in an attempt to modernize its business model.
As part of its restructuring efforts, Auchan plans to reduce the sales area of its hypermarkets by an average of 25%, ensuring that none exceed 10,000 square meters. The company intends to shift its focus towards smaller retail formats, including drive-through services and enhanced home delivery options for fresh produce. This initiative has been described by Auchan’s management as a “reconquest operation”, aimed at revitalizing the brand and improving customer experience.
In parallel, German auto parts and machinery manufacturer Schaeffler AG has announced plans to eliminate 4,700 jobs across Europe. This decision underscores the ongoing struggles faced by major automotive manufacturers like Volkswagen, as well as the ripple effects felt throughout the supply chain. Schaeffler described these job cuts as necessary structural measures designed to address “lower automotive production in Europe and ongoing weakness in various industrial sectors.”
The company’s restructuring efforts aim to enhance long-term competitiveness by consolidating production and adjusting operational capacities. This will involve relocating and closing two factories outside of Germany, with formal announcements expected by the end of the year. The majority of the job losses, approximately 2,800 positions, will occur in Germany across 10 sites, although five additional locations in Europe will also be impacted.
- Auchan to cut 2,389 jobs in France.
- 12 locations to close, including one supermarket and three hypermarkets.
- Plans to reduce hypermarket sales area by 25%.
- Schaeffler AG announces 4,700 job cuts in Europe.
- Job cuts driven by lower automotive production and industrial sector weaknesses.
- Majority of cuts (2,800 jobs) to occur in Germany.
